Hochul, labor leaders announce maximum weekly benefit increase for unemployed workers

Starting this month, maximum weekly benefit increases from $504 to $869

Information from the Office of Gov. Kathy Hochul

Gov. Kathy Hochul and labor leaders announced the maximum weekly unemployment insurance (UI) benefit increase for unemployed workers across the state. As part of the governor’s FY26 enacted budget, the state invested nearly $7 billion to pay off the federal UI trust fund loan, and bring the fund to solvency and increase the maximum weekly benefit from $504 to $869. The increase in UI benefits comes at the same time as the federal shutdown impacts 115,000 federal employees in New York, leaving them without paychecks.

Hochul said, “With the weekly maximum benefits increasing starting this month, we are able to uplift unemployed New Yorkers.”

New York State Department of Labor Commissioner Roberta Reardon said, “Increasing the maximum weekly unemployment insurance benefit will greatly help New Yorkers navigating job loss. This historic increase will help more people make ends meet when they need it most and put money directly into the hands of those out of work through no fault of their own. I am grateful to Gov. Hochul and the state Legislature for working together to pay off the Unemployment Insurance Trust Fund debt and make these increases possible.”

Before the COVID-19 pandemic, the UI trust fund had a positive balance of nearly $2.5 billion. However, due to the economic downturn caused by the pandemic, the balance was paid out to New Yorkers, requiring the state to borrow from the federal government to continue paying eligible claims. Paying off the debt and making the fund solvent has allowed the state to increase the maximum UI benefit rate so that it better aligns with other states, and changes to the taxable wage base to help build up reserves and stabilize the UI trust fund for the future.

Starting with payments issued the week of Oct. 13, the maximum amount customers can receive weekly will increase from $504 to $869, and increases are expected for many customers even if they are not currently receiving the highest rate. The weekly benefit payment amount is determined by how much a worker earned during a specific base period. New Yorkers can use this tool to estimate their weekly UI benefit amount.

By paying off the debt, the state is also putting money back in the pockets of business owners, whose contribution rates had continued to climb while the debt was paid down. Employers will no longer receive annual interest assessment surcharge (IAS) bills, and are projected to save an average of $100 per employee in 2026 and $250 in 2027. Additionally, the taxable wage base will increase in 2026, strengthening the trust fund over time and helping to maintain affordable tax rates for New York’s employers in the long term.

New York State AFL-CIO President Mario Cilento said, “During this time of chaos and confusion in Washington, here in New York, we are proudly taking action to support workers who are struggling to make ends meet when they find themselves out of work, through no fault of their own. I thank Gov. Hochul, Senate Majority Leader Stewart-Cousins, and Speaker Heastie for acknowledging the urgent need to significantly increase benefits, ensuring that workers can better support themselves and their families during times of unemployment.”

New York State Building Trades President Gary LaBarbera said, “It is important that we do what we can to uplift those New Yorkers who may be out of work or unsupported due to circumstances outside of their control, particularly during this challenging moment. Equipping these otherwise hardworking individuals to continue to support their families and contribute to their communities only benefits our larger economy and sustains the middle class. We applaud Gov. Hochul and Commissioner Reardon for pushing this increase to benefits forward, which will ultimately get more people back on their feet and keep them well-positioned to continue their careers after this storm passes.”