Effective Jan 1, 2025, employees working in the state of New Jersey will see some positive changes with regards to higher pay, but conversely higher payroll deductions such as temporary disability insurance and family leave insurance.

At the beginning of this year, the statewide minimum wage increased by $.36 to $15.49 per hour for most employees.

When Governor Murphy took office in 2018, the state’s minimum wage was $8.60 per hour, and increasing the minimum wage was quickly identified as a legislative priority. Legislation signed by Governor Murphy in February 2019 resulted in the gradual increase of the State’s minimum hourly wage to $15.13 on January 1, 2024 for most employees.

The NJ Department of Labor and Workforce development has announced changes to its required Temporary Disability Insurance program, and a premium increase for Family Leave Insurance (FLI) in New Jersey. After waiving the employee contribution for TDI in 2023 and 2024, the New Jersey labor board is reinstating the employee contribution rate at 0.23%, with a maximum employee contribution of $380.42 per year. Employer contributions are based on a taxable wage base of $43,300, up from $42,300 in 2024. Along with the rate increase, the maximum weekly benefit is going up from $1055 in 2024 to $1081 in 2025. The maximum benefit percentage remains at 85% of the employee’s average weekly wage.

Additionally, the New Jersey State Insurance Fund (NJSIF) has increased the employee contribution rate for Family Leave Insurance to 0.33%, a substantial jump from 0.09% in 2024.

FLI pays the same benefit as temporary disability in New Jersey, with the benefit maxing out at $1,081 weekly. FLI is available for New Jersey employees who need time off to care for or bond with an infant or a newly adopted or foster child within the first 12 months, care for any family member with a serious health condition, or deal with issues of domestic violence.

Additionally, to be eligible for Unemployment Insurance benefits in 2025, one must have earned at least $303 per week during 20 or more weeks in covered employment during the base year period, or one must have earned at least $15,200 in total covered employment during the base year period.