NJ Workers' Compensation Rates  2026
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NJ Workers' Compensation Rates 2026

Workers' Compensation

 

Maximum Weekly Benefit Rate for 2026: $1,199. This represents an increase from the 2025 rate of $1,159 per week. Effective January 1, 2026.
 
Current 2025 Rates for Reference
For 2025 (which just took effect January 1, 2025):
  • Maximum Weekly Rate: $1,159
  • Minimum Weekly Rate: $309
Premium Rate Changes
Good news for employers: New Jersey approved a 6.9% statewide average decrease in workers' compensation premium rates effective January 1, 2025, with varying decreases by industry:
  • Manufacturing: -5.8%
  • Contracting: -5.9%
  • Goods and Services: -7.5%
  • Office/Clerical: -9.6% 
How Workers' Comp Rates Work in New Jersey
New Jersey uses a state-mandated rate system in which all base manual rates are set by the NJ Division of Workers' Compensation and are revised annually. However, insurance companies can apply policy credits and debits up to 15% to adjust their rates. 
 
 
Rate Structure
 
Workers receive 70% of their average weekly wages, subject to the maximum and minimum weekly rates. The specific benefit amount depends on:
  • Type of disability (temporary, permanent partial, total)
  • Severity of injury
  • The worker's average weekly wage
The 2026 rates reflect adjustments tied to changes in the State Average Weekly Wage (SAWW) to ensure injured workers receive fair compensation that keeps pace with wage growth.
 

Major Trends:
  • Steady Growth Period (2015-2021): Rates increased at a consistent 2-3% annual rate, rising from $855 in 2015 to $969 in 2021.
  • Dramatic Jump in 2022: 2022 saw a remarkable 10% increase to $1,065 - the most significant jump since the early 1980s.
  • Continued Growth: Rates continued climbing through 2023 ($1,099), 2024 ($1,131), 2025 ($1,159), and are projected to reach $1,199 in 2026 
Key Features of the Graph:
  • Visual Timeline: Shows the progression from 2015 to 2026
  • Reference Line: The red dashed line at 2022 highlights the major rate spike
Important Context:
The rates are tied to New Jersey's statewide average weekly wage, which explains the significant 2022 increase. Workers receive 70% of their average weekly wages, subject to these maximum rates. 
This represents a 40% total increase from 2015 to 2026, demonstrating the significant impact of wage growth and inflation on workers' compensation benefits in New Jersey.
See 2025 NJ Reg Text 700615 (NS), 57 N.J.R. 1922(a) September 2, 2025
 
Updated: 1/5/2026
....
*Jon L. Gelman of Wayne, NJ, is the author of NJ Workers' Compensation Law (West-Thomson-Reuters) and co-author of the national treatise Modern Workers' Compensation Law (West-Thomson-Reuters).
LinkedIn: JonGelman
Author: "Workers' Compensation Law" West-Thomson-Reuters
 
© 2026 Jon L Gelman. All rights reserved.
 
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The firm of Jon L. Gelman is a specialty law office concentrating its practice in the litigation of catastrophic and serious injuries resulting from work-related exposures and traumatic events. Our clients are located throughout the United States.

We are dedicated to utilizing our knowledge and skills in conjunction with the most modern technology to provide the best possible legal representation. Our practice is built on a strong foundation of in-depth knowledge of the subject matter which is reflected in the 3-volume treatise entitled Workers' Compensation Law , (Thomson-West), that we authored, and in the 3-volume national treatise, Modern Compensation Law, (Thomson-West), that we co-authored.

Our scope of representation ranges from complex workers' compensation actions to product liability claims throughout the country.

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