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Significant Decrease in 2023 Premium Rates for Temporary Disability Insurance (TDI) and Family Leave Insurance (FLI)

October 25, 2022

On October 21, 2022, the NJ Department of Labor and Workforce Development (LWD) announced the 2023 TDI and FLI contribution rates. Below are the 2023 contribution rates for employees who work in NJ:

  2023 2022
TDI 0.00% 0.14%
FLI 0.06% 0.14%


As the above chart shows, there will be no employee contribution for TDI but only for FLI of 0.06% rate in 2023. Employers who participate in the state's TDI program will be moved to a lesser contribution table and are expected to see a collective reduction of $20 million in their TDI contributions for 2023. Employers are not required to contribute to FLI.

TDI and FLI contribution rates have been decreasing over recent years due to low utilization of the TDI and FLI programs (fewer claims) compared to the collected funds.

TDI provides partial wage replacement to NJ employees who must stop working due to a physical or mental health condition or other disability unrelated to their work. FLI provides NJ employees with partial wage replacement when they take time off to bond with a newborn, newly adopted or placed foster child, or to provide care for seriously ill or injured family members. (The definition of family members is broad for the purpose of NJ FLI, and it can be found here.)

Sources

2023 Contribution Rates Announcement
New Jersey TDI and FLI Programs Main Site


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