Chart: Examples of effective replacement rates for unemployment benefits by worker earnings level, accounting for minimum and maximum benefit amounts

Table 2

Examples of effective replacement rates for unemployment benefits by worker earnings level, accounting for minimum and maximum benefit amounts

Earnings level If a worker’s average weekly wage is	Effective replacement rate The worker’s unemployment benefits equal
50% of state’s average weekly wage	At least 85% of preseparation wages*
100% of state’s average weekly wage	78% of preseparation wages
125% of state’s average weekly wage	72% of preseparation wages
150% of state’s average weekly wage	68% of preseparation wages
200% of state’s average weekly wage	64% of preseparation wages
300% of state’s average weekly wage	50% of preseparation wages
500% of state’s average weekly wage	30% of preseparation wages

Note: The effective replacement rate is how much of a worker’s preseparation wages the worker gets in UI benefits. It is the net effect when the different replacement rates in Table 4.1 are applied to different portions of preseparation wages and added together and any minimums or maximums accounted for. The "At least" qualifier in row one accounts for the $250 floor on minimum benefits. If $250 > 85%*50% of the state’s average weekly wage, then the worker would get more than 85% of their preseparation wage.

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