Disability Insurance | Savings for New Jersey Private TDB/FLI Plan
Published: 11.19.2024
For the first time since 2022, the State of New Jersey’s mandated disability market is open for business.
On October 21, 2024, the State of New Jersey announced there will be a tax on employee wages to pay for New Jersey Temporary Disability Benefits (TDB) coverage. Previously, for the past two years, the State of New Jersey eliminated all costs to employees; and consequently, private carriers found it difficult to identify a market for the benefit.With this year’s increases, carriers can provide solutions to help employers save money and improve claims handling.
- Employees will now pay 0.23% of the first $165,400 earned to pay for TDB coverage. This means that employees will have to pay up to $380.42 in 2025 for the protection.
- In addition, the tax on New Jersey Paid Family Leave (PFL) will be increased from 0.09% to 0.33%. In 2024, employees paid a maximum of $145.26 for NJ Family Leave Insurance (FLI), and in 2025, they will pay a maximum of $545.82.
2024 vs. 2025 Comparison
| Temporary Disability Benefits (TDB) | 2025 | 2024 |
| Maximum Weekly Benefit Rate | $1,081 | $1,055 |
| Maximum Employee Taxable Wage Base | $165,400 | $161,400 |
| Maximum Employer Taxable Wage Base | $43,300 | $42,300 |
| Employee Annual Contribution Rate | 0.23% | 0.00% |
| Maximum Employee Annual Contribution | $380.42 | $0.00 |
| Maximum Employee Weekly Contribution | $7.32 | $0.00 |
| Family Leave Insurance (FLI) | 2025 | 2024 |
| Employee Annual Contribution Rate | 0.33% | 0.09% |
| Maximum Employee Annual Contribution | $545.82 | $145.26 |
| Maximum Employee Weekly Contribution | $10.50 | $2.79 |
| Maximum​ Total Tax for TDB and FLI | $926.24 | $145.26 |
Competitive Rates & Quoting
To get started with a quote for a private NJ TDB/FLI plan, please forward your quote request with 1-3 years of the group’s AC 174.1 forms issued by the State of New Jersey.Email your quote request, including the group name and broker of record, to the Savoy Specialty Team at ancillary@savoyassociates.com.
