Maximum Weekly Benefit Levels Set for Temporary Disability and Unemployment Insurance
Trenton, New Jersey – Commissioner David J. Socolow of the New Jersey Department of Labor and Workforce Development announced the annual changes for 2007 in the maximum benefit rates and the taxable wage base for New Jersey’s Unemployment Insurance, Temporary Disability Insurance and Workers’ Compensation programs.
According to laws governing these programs, the maximum benefit rates and the taxable wage base on which employers and workers pay into the systems must be recalculated each year, based on the statewide average weekly wage. The benefit rates and taxable wage base for 2007 are based on the average weekly wage for 2005, which rose 2.9 percent that year to $947.64 from $920.88 in 2004.
Effective January 1, 2007, the maximum weekly benefit amount for eligible unemployment insurance claimants will increase from $521 to $536. The maximum weekly benefit for State Plan temporary disability insurance claims will rise from $488 to $502, while the maximum weekly rate for workers’ compensation will increase from $691 to $711.
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 $26,600 in 2007 from the current level of $25,800.
Benefit eligibility criteria that are based on the State minimum hourly wage also will change in 2007 because of the increase in the State minimum hourly wage from $6.15 per hour to $7.15 per hour which becomes effective on October 1, 2006. In order to be eligible to receive unemployment or temporary disability benefits under regular criteria, a claimant must have worked at least 20 base weeks in the preceding year in employment covered by unemployment insurance. The amount of earnings required to establish a base week will increase from $123 to $143 in 2007, while the amount of earnings required in those cases in which a claimant has not worked 20 base weeks will rise from $6,200 to $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 0.4 percent of taxable wages during calendar year 2007.
