TRENTON, December 23, 2008 – New Jersey Labor Commissioner David J. Socolow today announced the annual changes for 2009 in the maximum benefit rates and taxable wage base for New Jersey’s Unemployment Insurance, Temporary Disability Insurance and Workers’ Compensation programs.

The laws governing these programs require that the maximum benefit rates and the taxable wage base must be established each year based on the statewide average weekly wage.  The benefit rates and taxable wage base for 2009 are based on the average weekly wage for 2007, which rose by 4.3 percent to $1,031.28 from $989.23 in 2006.

Effective January 1, 2009, the maximum weekly benefit amount for new eligible unemployment insurance claims will increase from $560 to $584.  The maximum weekly benefit for State Plan temporary disability insurance claims will rise from $524 to $546, while the maximum weekly rate for workers’ compensation will increase from $742 to $773.

Wages subject to taxation under the unemployment and temporary disability insurance programs, as well as the Workforce Development Partnership Program and Supplemental Workforce Fund for Basic Skills will increase to $28,900 in 2009 from the current level of $27,700.

Benefit eligibility criteria that are based on the State minimum hourly wage of $7.15 per hour will not change in 2009.  Therefore, the amount of earnings required to establish a base week in order to be eligible for unemployment or temporary disability benefits under regular criteria will remain $143 in 2009, while the amount of earnings required in those cases in which a claimant has not worked 20 base weeks will stay at $7,200.

The contribution rate for state and local government entities that choose to make contributions, rather than reimbursing the trust fund for unemployment insurance benefits paid to their former employees, will remain at 0.5 percent of taxable wages during calendar year 2009.

Pursuant to the new Family Leave Insurance Benefits law, beginning on January 1, 2009, the maximum rates for Family Leave Insurance will be the same as the rates applied to State Plan temporary disability insurance.

Below is a chart showing the 2008 rates and the changes taking place January 1, 2009.

MAXIMUM BENEFIT RATES AND ELIGIBILITY CRITERIA

 

                                                                                         2008                         2009

Maximum Unemployment Insurance Weekly

      Benefit Amount                                                             $560                         $584

Maximum Temporary Disability Insurance

      Weekly Benefit Amount                                                 $524                         $546

Maximum Worker’s Compensation Weekly

      Benefit Amount                                                            $742                         $773

Taxable Wage Base                                                           $27,700                    $28,900

Base Week Amount                                                            $143                         $143

Alternative Earnings Amount                                                $7,200                      $7,200

Governmental Entities

      Contribution Rate                                                          0.5%                         0.5%