Washington’s average wage was up 6.7 percent in 2019. This will affect several state programs.

By: Emily Makings
11:56 am
June 16, 2020

The Employment Security Department (ESD) reports that Washington’s average annual wage increased to $69,000 in 2019. The average weekly wage increased from $1,255 in 2018 to $1,340 in 2019 (6.7 percent).

Unemployment insurance (UI) taxes and benefits, workers’ compensation benefits, and paid family and medical leave benefits are all tied to the average weekly wage.

Thus, for new UI claims opened beginning July 5, the minimum weekly UI benefit will increase to $201 (from $188) and the maximum weekly benefit will increase to $844 (from $790). Additionally, the UI taxable wage base for 2021 will be $56,500 (up from $52,700 currently). This means that employers will pay unemployment taxes on the first $56,500 of an employee’s wages. Washington’s taxable wage base is currently the highest in the country.

For workers’ compensation, time-loss and pension benefit amounts are based on a percentage of the state average wage. These benefits will increase, but the Department of Labor & Industries has not yet made the official announcement on that.

Finally, the increase in the average weekly wage will also mean increases to paid family and medical leave weekly benefits (RCW 50A.15.020). For example, based on the statute, the maximum weekly benefit will increase on Jan. 1 from $1,000 to $1,206.

Categories: Economy , Employment Policy.