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OLYMPIA – Washington’s average annual wage grew by 5.9% in 2023 to $89,138, according to the state Employment Security Department.
The average wage grew more in 2023 than in 2022, when it grew by 2%.
Employment Security uses the average annual wage to calculate:
- Unemployment benefits for new claims opened on or after July 7, 2024.
- Paid family and medical leave benefits for new claims filed on or after Jan. 1, 2025.
- Employers’ unemployment taxes beginning Jan. 1, 2025.
The state Department of Labor & Industries also uses the average annual wage to calculate workers’ compensation benefits.
The average annual wage and average weekly wage include only those wages that are covered by unemployment insurance (UI).
Average weekly wage
The average weekly wage rose from $1,618 in 2022 to $1,714 in 2023. The increase was driven by a 2.5% increase in employment and an 8.5% increase in total wages and salaries, which grew by nearly $24.6 billion in 2023.
Unemployment benefits
The average number of workers in Washington covered by UI rose from 3,435,848 in 2022 to 3,520,247 in 2023 – an increase of 83,399 workers.
The minimum weekly unemployment benefit will increase by $19 to $342 for new claims opened on or after July 7, 2024. The minimum benefit amount is calculated at 20% of the average weekly wage.
Due to legislative changes (SB 5061), the calculation is different for claimants who receive a weekly benefit amount below 20% of the average weekly wage. Their weekly benefit amount will be equal to their personal average weekly wage up to $323.
The maximum weekly benefit will increase by $60 to $1,079. It is calculated as the greater of $496 or 63% of the average weekly wage.
Paid leave benefits
Based on an average weekly wage of $1,714 in 2023, the maximum weekly paid leave benefit will be $1,542 for new claims filed on or after Jan. 1, 2025. The minimum weekly paid leave benefit will remain at its current amount, which is $100.
Employers’ unemployment taxes
The taxable wage base is the maximum amount on which employers must pay taxes for each employee. Washington's unemployment insurance program is an experience-based system. In general, employers’ tax rates depend on the size of their payroll and how much their former workers collect in unemployment benefits.
Beginning in 2025, employers will pay unemployment payroll taxes on the first $72,800 paid to each employee – up from $68,500 in 2024.
The UI tax rate for businesses is normally calculated and mailed to employers in December each year.
Learn more about UI tax rates at: esd.wa.gov/employer-taxes/determining-rates.
Table 1: Summary of Average Annual Wage (AAW) effects on benefits and taxes
|
2023 AAW |
2022 AAW |
2021 AAW |
|
|---|---|---|---|
|
Average annual wage |
$89,138 |
$84,167 |
$82,508 |
|
Weekly unemployment benefits |
Minimum $342* Maximum $1,079 |
Minimum $323* Maximum $1,019 |
Minimum $317 Maximum $999 |
|
Weekly paid leave benefits |
Minimum $100 Maximum $1,542 |
Minimum $100 Maximum $1,456 |
Minimum $100 Maximum $1,427 |
|
Annual unemployment taxes |
On employees’ first $72,800 |
On employees’ first $68,500 |
On employees’ first $67,600 |
*Or the average weekly wage, whichever is lower
Data and details
Industries with the largest average annual wage growth in 2023 were:
- Professional, scientific and technical services, up 10.5%.
- Information, up 9.3%.
- Mining, up 8.6%.
Find more information about industry level employment and wages at esd.wa.gov/labormarketinfo/covered-employment.