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.