New Jersey Unemployment, Disability Benefits Will Go Up For 2026

New Jersey workers who rely on unemployment, temporary disability and family leave benefits will see higher maximum weekly payments beginning January 1, 2026, under adjusted rates announced by the state Department of Labor and Workforce Development.

Unemployment Insurance, Temporary Disability Insurance, and Family Leave Insurance rates will all rise, as well as the benefit rates for the maximum Workers’ Compensation, temporary disability, permanent total disability, permanent partial disability, and dependency.

The maximum weekly unemployment insurance benefit will rise to $905, up from $875. The cap for state plan temporary disability insurance and family leave insurance will increase to $1,119 from $1,081. Maximum weekly workers’ compensation benefits for temporary disability, permanent total disability, permanent partial disability and dependency will increase to $1,199 from $1,159.

The state also announced higher taxable wage bases that determine how much of a worker’s earnings are subject to payroll contributions. For unemployment insurance, the taxable wage base will increase to $44,800 in 2026 from $43,300 in 2025. For temporary disability and family leave insurance, the wage base for worker contributions will rise to $171,100 from $165,400.

State labor officials said the annual adjustments are required by law and are tied to changes in the statewide average weekly wage. The 2026 rates are based on an average weekly wage of $1,598.66 in 2024, a 3.4% increase from $1,545.60 in 2023.

Eligibility thresholds for benefits will also increase. To qualify for unemployment, temporary disability or family leave benefits in 2026, a worker must earn at least $310 per week for 20 base weeks, up from $303 in 2025. Alternatively, workers who do not meet the 20-week requirement must earn at least $15,500 during the base year period, an increase from $15,200.

Those eligibility amounts are calculated using the state minimum wage in effect as of October 1, 2025, when New Jersey’s minimum wage was $15.49 an hour for most workers. The minimum wage is scheduled to rise to $15.92 an hour on Jan. 1, 2026.

In addition, the unemployment insurance contribution rate for state and local government entities that choose to contribute to the 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.

The changes take effect statewide at the start of the new year.

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3 COMMENTS

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Emanuel Levy
23 days ago

Good article just one small note. Unemployment starts the week on a Sunday so your claim has to be dated 1/4/2026 to have the new rate.

Any existing claim including one that was closed and then reopened does not get the new rate.

Puny Loves Blue
23 days ago

How can someone live on a once a month check?

Kate
Reply to  Puny Loves Blue
23 days ago

Some seniors on Social security do. Struggle but it happens.