2025 Tax Rates for Unemployment Insurance and Temporary Disability Insurance

Published on Friday, December 20, 2024

CRANSTON, R.I. – Today, the Department of Labor and Training (DLT) today announced the 2025 tax rates for the unemployment insurance (UI) and temporary disability insurance (TDI) programs. 

The 2025 UI Taxable Wage Base for most employers will be $29,800 in 2025, an increase of $600 or 2.1 percent from the 2024 taxable wage base of $29,200. For employers at the highest tax rate the UI taxable wage base is set $1,500 higher and will be $31,300 in 2025. The UI Taxable Wages Base is set at 46.5 percent of the average annual wage of workers employed by employers subject to the contribution provisions (i.e. taxable employers) of the Employment Security Act. 

The 2025 TDI Taxable Wage Base for Rhode Island employees will be $89,200 in 2025, an increase of $2,200 (2.5%) from the 2024 taxable wage base of $87,000. The TDI contribution rate will be set at 1.3 percent for calendar year 2025 up from 1.2 percent in 2024. The maximum TDI contribution in 2025 will be $1,159.60, an increase of $115.60 or $2.22 a week from the 2024 maximum contribution of $1,044. An individual working full time earning the minimum wage of $15.00 an hour will pay a total of $405.60 in TDI contributions in 2025 or $7.80 a week. 

UI Tax Schedule G, with rates ranging from 1.1 percent to 9.7 percent, will remain in effect throughout calendar year 2025. These rates will be reduced by 0.21 percent to offset the Job Development Assessment. 

The new employer rate will be 1.21 percent for calendar year 2025, this will also be reduced by 0.21 percent to offset the Job Development Assessment.

About Unemployment Insurance (UI)

Unemployment Insurance provides temporary income support to workers who have lost their jobs through no fault of their own and have sufficient wages in the base period to meet the monetary requirements. Worker benefits are funded entirely from state and federal UI taxes paid by Rhode Island employers. 

About Temporary Disability Insurance (TDI)

TDI protects workers against wage loss due to a non-work-related illness or injury, and through Temporary Caregiver Insurance (TCI), which provides up to six weeks of payments to bond with a new child or to care for a seriously ill family member. TCI is not a separate state program; TCI is part of the TDI program. TDI is paid by employees, not employers, through a payroll tax.

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