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

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Chris Barron, Communications Director

OLYMPIA – Washington’s average annual wage grew by 4.9% in 2025 to $99,810, according to the Employment Security Department. 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. 

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.  

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

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

Average weekly wage 

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 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 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. 

Unemployment benefits 

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, 2026. 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.  

Paid leave benefits  

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 January 1, 2027. The minimum paid leave benefit will remain at $100. 

Employers’ unemployment taxes 

The taxable wage base is the maximum amount on which you 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 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 Employment Security’s employer taxes webpage for more information on how your unemployment insurance tax rate is determined.  

Table 1: Summary of Average Annual Wage (AAW) effects on benefits and taxes
  2025 AAW 2024 AAW 2023 AAW
Average annual wage (preliminary) $99,810 $95,160 $89,138
Weekly unemployment benefits

Minimum $383

Maximum $1,208

(effective July 2026 - June 2027)

Minimum $366

Maximum $1,152

(effective July 2025 - June 2026)

Minimum $342

Maximum $1,079

(effective July 2024 - June 2025)

Weekly paid leave benefits

Minimum $100

Maximum $1,727

(effective January 2027 - December 2027)

Minimum $100

Maximum $1,647

(effective January 2026 - December 2026)

Minimum $100

Maximum $1,542

(effective January 2025 - December 2025)

Annual unemployment taxes

On employees' first $82,000

(effective January 2027 - December 2027)

On employees' first $78,200

(effective January 2026 - December 2026)

On employees' first $72,800

(effective January 2025 - December 2025)