MORRIS COUNTY — The New Jersey Department of Labor and Workforce Development (NJDOL) has announced updated maximum benefit rates and taxable wage bases for several worker benefit programs, all of which will take effect on January 1, 2026.
Under the new rates, the maximum weekly Unemployment Insurance (UI) benefit will increase to $905, up from $875 in 2025. The maximum weekly benefit for state plan Temporary Disability Insurance (TDI) and Family Leave Insurance (FLI) will rise to $1,119, an increase from $1,081. In addition, the maximum weekly Workers’ Compensation benefit for temporary disability, permanent total disability, permanent partial disability, and dependency will increase to $1,199, up from $1,159.
State officials noted that maximum benefit rates and taxable wage bases are recalculated annually based on the statewide average weekly wage (SAWW) from the second preceding calendar year, as required by law. The 2026 rates are based on the 2024 SAWW of $1,598.66, which represents a 3.4% increase from the $1,545.60 average weekly wage recorded in 2023.
The taxable wage base for workers covered under the Unemployment Compensation Law will increase to $44,800 in 2026, up from $43,300 in 2025. Meanwhile, the taxable wage base for Temporary Disability Insurance and Family Leave Insurance will rise to $171,100, compared to $165,400 in the prior year.
Eligibility thresholds will also increase in 2026. To qualify for UI, TDI, or FLI benefits, workers must earn at least $310 per week for 20 base weeks, up from $303 in 2025. Alternatively, individuals who do not meet the base week requirement must earn at least $15,500 during the base year period, an increase from $15,200.
These eligibility thresholds are calculated using the New Jersey minimum wage in effect as of October 1, 2025, which was $15.49 per hour for most employees. The state minimum wage is scheduled to rise by $0.43 to $15.92 per hour on January 1, 2026.
In a related update, the contribution rate for state and local government entities that choose to contribute to the Unemployment Insurance trust fund—rather than reimburse it for benefits paid—will decrease to 0.5% of taxable wages in 2026, down from 0.6% in 2025.
State labor officials emphasized that these annual adjustments are intended to keep benefit levels aligned with wage growth and economic conditions across New Jersey.
