The New Jersey Department of Labor has published the 2021 workers’ compensation rates. Workers’ compensation benefits are calculated every year based on a statewide average weekly wage (SAWW). Rates are applied based on the year that the injury took place. The maximum rate for 2021 is $969 max / $258 min per week. This is a slight increase from 2020 where a maximum rate was $945.
New Jersey also provides total disability wage loss benefits at a minimum of 25% and a maximum of 75% of the weekly rate. The SAWW for 2021 in New Jersey was calculated to be $1,291.42. Workers’ compensation temporary disability benefits are typically awarded based on 70% of the injured worker’s earnings, however they are subject to the 20% minimum or the 75% maximum of the SAWW based on NJSA 34:15-12(a) and (b). Workers’ compensation will provide benefits that are the lesser of 70% worker’s average earnings or 75% of the SAWW.
New Jersey also provides benefits for permanent partial disabilities and permanent total disabilities. This is when an injury is permanent in some form, and does not go away after the injured worker reaches maximum medical improvement for the injuries.