Last month the Employment Security Department (ESD) announced that Washington’s average annual wage was $65,301 in 2018. That’s an increase of 5.5 percent over 2017. (The average weekly wage was $1,255 in 2018.)

Several employment-related taxes and benefits are linked to the state average wage. Consequently, ESD also announced that for 2020, employers will pay unemployment taxes on the first $52,700 of an employee’s wages. Washington’s taxable wage base for unemployment insurance is consistently the highest in the nation. For example, Washington’s taxable wage base in 2019 is $49,800; the second highest is $46,800 in Hawaii.

Additionally, the minimum weekly benefit for unemployment will increase to $188 (for claims opened as of today). The maximum weekly unemployment benefit will increase to $790.

Today, the Department of Labor & Industries announced that workers’ compensation time-loss and pension benefits will increase by 5.5 percent, due to the increase in the state average wage. The maximum monthly benefit will be $6,530.10.

The state average wage will also affect paid family and medical leave benefits. Benefits will be available beginning Jan. 1, 2020. Under the law, the weekly benefit is 90 percent of the employee’s average wage, up to half of the most-recently-calculated state average weekly wage. For any portion of the employee’s wage that is more than half of the state average, the benefit will be 50 percent.

So, if employees earning exactly the state average weekly wage ($1,255) take paid family and medical leave next year, their weekly benefit will be $878.50.