Progressive replacement rates for unemployment benefits by earnings level and under a maximum benefit cap

Earnings level

For that portion of a worker’s average weekly wage (AWW) that is

Replacement rate

The share of lost wages replaced by UI benefits is

Between 0% and 50% of state AWW 85%
Between 51% and 100% of state AWW 70%
Over 100% of state AWW 50%
Minimum benefit amount The greater of 30% of state AWW or $250 per week
Maximum benefit amount 150% of state’s AWW

Note: The earnings level is a worker’s average weekly wage as a share of state average weekly wage during the base period. Under the proposed progressive system for calculating UI benefits, different benefit rates apply to different levels of earnings for each worker, with rates falling as earnings rise (kind of like how marginal tax rates work, but in reverse). See Table 5.2 for how this translates to effective tax rates for workers at different earnings levels.

View the underlying data on