New average annual wage estimates adjust unemployment insurance, paid leave benefits

Washington's average annual wage grew by 4.9% in 2025 to $99,810, according to the Employment Security Department (ESD) in a recent news release.

The increase was driven by a 0.2% decrease in covered employment and a 4.7% increase in total earnings, which grew by nearly $15.7 billion in 2025.

The 2025 average annual wage is used to calculate:

-Unemployment benefits opened on or after July 5, 2026.

-Paid family and medical leave (paid leave) benefits filed on or after Jan. 1, 2027.

-Employers' unemployment taxes beginning Jan. 1, 2027.

The industries with the largest average annual wage growth in 2025 were professional, scientific and technical services, up 12.5%; finance and insurance, up 8.7%; and information, up 8.4%. Find more industry-level employment and wage information on ESD's covered employment webpage at https://tinyurl.com/9h4wze4u.

The Washington state Department of Labor and Industries also uses the average annual wage to calculate worker's compensation benefits.

All data referenced in the report directly compares previous years' preliminary annual average wage estimates without adjustment for inflation.

The average weekly wage rose from $1,830 in 2024 to $1,919 in 2025. These figures include only those wages covered by unemployment insurance.

The average number of workers in Washington covered by unemployment insurance decreased from 3,544,556 in 2024 to 3,537,651 in 2025, a decrease of 6,905 workers.

The minimum weekly unemployment benefit, calculated at 20% of the average weekly wage, will increase by $17 to $383, for new claims opened on or after July 5, according to the news release. The maximum weekly benefit, which is the greater of $496 or 63% of the average weekly wage, will increase by $56 to $1,208. No one can receive a weekly benefit amount that exceeds their average weekly wage.

Currently, the minimum paid leave benefit is $100, while the maximum paid leave benefit is $1,647. Based on an average weekly wage of $1,919 in 2025, the maximum paid leave benefit will be $1,727 for new claims filed on or after Jan. 1, 2027. The minimum paid leave benefit will remain at $100.

The taxable wage base is the maximum amount on which residents must pay taxes for each employee. Washington's unemployment insurance program is an experience-based system. In general, an employer's tax rate depends on how much former workers collect in unemployment benefits and the size of an employer's payroll, the release stated.

The unemployment insurance tax rate for businesses is normally calculated and mailed to employers in December each year with the taxable wage base applying to a calendar year. Beginning in 2027, employers will pay unemployment payroll taxes on the first $82,000 paid to each employee, up from $78,200 in 2026.

Visit ESD's employer taxes webpage at https://tinyurl.com/3592nm7t for more information on how unemployment insurance tax rate is determined.

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