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.