According to the Employment Security Department (ESD), Washington’s average annual wage was $89,138 in 2023, a 5.9% increase over 2022. ESD reports, “The increase was driven by a 2.5% increase in employment and an 8.5% increase in total wages and salaries, which grew by nearly $24.6 billion in 2023.”

The state average wage is used to calculate unemployment insurance (UI) taxes and benefits, paid family and medical leave benefits, and workers’ compensation benefits.

For 2025, the UI taxable wage base will increase from $68,500 to $72,800. Washington employers will pay UI taxes on the first $72,800 paid to an employee beginning in January. (Washington’s taxable wage base is the highest in the country—the next highest in 2024 is Hawaii, at $59,500.)

For new UI claims opened on or after July 7, 2024, maximum weekly UI benefits will increase from $1,019 to $1,079. Minimum weekly UI benefits will increase from $323 to $342 (or the claimant’s own average weekly wage, whichever is lower).

For paid family and medical leave (PFML) claims filed on or after Jan. 1, 2025, maximum weekly benefits will increase from $1,456 to $1,542.

The Department of Labor & Industries has not yet officially announced the new workers’ compensation time-loss and pension benefit amounts, but they will increase by 5.9% as well.