New Jersey Temporary Disability Insurance

What New Jersey Temporary Disability Insurance Covers

New Jersey’s Temporary Disability Insurance (TDI) pays cash benefits when you have to stop working because of a physical or mental health condition, or another disability, that isn’t related to your job. Common reasons include surgery, a serious illness, an injury outside work, pregnancy and recovery from childbirth.

Your healthcare provider certifies how long you need to recover, up to a maximum of 26 weeks. Most New Jersey employers must carry TDI for their employees. Workers and employers both pay into it. In 2026 workers contribute 0.19% of the first $171,100 in wages, a maximum of $325.09 for the year.

A few groups aren’t covered by the state program:

• federal government employees,
• local government and school district employees, where coverage is optional,
• people who work for an out-of-state employer,
• some faith-based organizations, and
• workers who aren’t employees, such as properly classified independent contractors.

If you think you’re covered but see no TDI deduction on your pay, apply anyway. New Jersey says the missing deduction may be an error.

How Much Does Temporary Disability in NJ Pay?

TDI pays 85% of your average weekly wage, up to a yearly cap. New Jersey figures your average weekly wage by dividing your base year earnings by your number of base weeks, meaning weeks when you earned at least the minimum.

	2025	2026
Maximum weekly benefit	$1,081	$1,119
Minimum earnings for a base week	$303	$310
Earnings test to qualify	20 base weeks, or $15,200 in the base year	20 base weeks, or $15,500 in the base year
Worker contribution	0.23% on the first $165,400	0.19% on the first $171,100

New Jersey’s own example: Steve’s disability starts March 6, 2026. His base year earnings are $18,200 over 45 base weeks, an average weekly wage of $404. His weekly benefit is 85% of that, or $343.

Your base year is the first four of the last five completed calendar quarters before the Sunday of the week your disability began. If that Sunday falls in October, November or December 2026, for example, your claim uses earnings from July 1, 2025 to June 30, 2026. If you don’t qualify with the standard base year, New Jersey can use an alternate base year.

The most you can get for one period of disability is the lesser of one-third of your total base year wages or 26 times your weekly benefit.

The Waiting Week

TDI starts paying on the eighth consecutive day of your leave. The first seven days are called the waiting week, and they’re built into the program by law.

You don’t lose that week if you’re out a while. New Jersey pays benefits for the waiting week retroactively once you’ve been out on leave for 22 days without pay from your employer.

Who Qualifies for NJ Short-Term Disability

To have a valid claim, you need to:

1. have a disability that keeps you from working and isn’t work-related,
2. have paid into TDI through covered New Jersey employment,
3. meet the minimum earnings test for the year (in 2026, 20 weeks earning at least $310 each, or $15,500 in the base year), and
4. have a medical provider certify the period you can’t work.

If you became unemployed recently and then got sick or hurt, you may still qualify. Apply as usual, and New Jersey forwards your application to its Disability During Unemployment section.

If your injury or illness came from your job, contact the Division of Workers’ Compensation first. If the workers’ compensation carrier denies or stops your benefits, you may apply for TDI, but you must file a formal claim petition with the Division and agree to repay TDI if you’re later awarded workers’ compensation.

How to Apply for New Jersey Temporary Disability

If you’re covered by the state plan, apply online through New Jersey’s secure system. You can start on or after your first day of disability, and you have 30 days after your leave starts to file. You can also apply by mail or fax with the paper form. Sign and date it if you mail or fax it.

1. Create an account in the online system and start an application.
2. Fill in your part. Have ready your Social Security number, the date you became disabled, the provider who treated you within 10 days of your first day unable to work, any hospital or urgent care dates, every employer you worked for in the last 18 months, any paid time off after your last day, and your expected return date.
3. Print or save the instructions with your Online Form ID and give them to your provider. They aren’t notified automatically, and it’s your job to make sure their certification gets submitted.
4. Verify your identity with ID.me if you’re asked to.
5. Watch for mail. You’ll get a C-05 confirming receipt, then a D-10 if you’re approved or a D-30 if you’re denied. A C-10 or M-10 means information is missing.

Don’t file online and also mail or fax the same application, which slows things down. If you need more time off, New Jersey sends a P-30 before your last authorized payment, and you use “Extend or End a Claim” online to have your provider certify the extension.

Private Plans

Your employer can cover you through an approved private plan instead of the state plan. The plan can be insured by the employer, an insurance company or a union welfare fund. Every private plan must be approved by New Jersey’s Private Plan Compliance Section and must offer at least the same benefit amounts, eligibility rules and duration as the state plan.

If you’re on a private plan, your employer’s insurance carrier handles and pays the claim, and your HR department should tell you how to apply. If you send your application to the state by mistake, it gets forwarded to the carrier, which can take 4 to 5 weeks. Apply directly with the carrier. If you have trouble with a private plan claim, New Jersey’s Private Plan Compliance Section takes questions through an online form.

Disability and Maternity Leave in NJ

TDI covers pregnancy and recovery from childbirth:

• Before birth: usually up to four weeks before your expected delivery date.
• After birth: up to six weeks after a vaginal delivery, or up to eight weeks after a Caesarean.
• Complications: longer, if your provider certifies complications that already exist.

If your delivery date hasn’t been verified yet, New Jersey pays up to four weeks before and four weeks after your estimated due date until it gets confirmation.

When your TDI recovery period ends, you can switch to Family Leave Insurance to bond with your baby. You can take it as twelve weeks in a row, or as 56 individual days during your baby’s first year.

How TDI Payments and Taxes Work

If your state plan claim is approved, Money Network/My Banking Direct mails you a debit card in a plain, unmarked envelope that can look like junk mail, so check your mail carefully. If you already have a card from an earlier disability, family leave or unemployment claim, New Jersey pays to that same card.

• Timing: payments usually come every two weeks after the first one, with a one-week lag for processing. Funds should be on your card within three business days of the payment date.
• Daily rate: each day of benefits is one-seventh of your weekly benefit rate.
• Taxes: Social Security and Medicare are taken out automatically. Federal income tax is withheld only if you ask when you apply, or send IRS form W-4S. New Jersey doesn’t tax TDI.
• Your W-2: your employer reports the benefits on your W-2, often as “third party sick pay.” If they’re missing, ask your employer to correct it.

Benefits end when you recover and return to work, reach your claim maximum, or have received benefits for 182 days. Garnishments and money owed from an earlier claim can be withheld from your payments.

Your Job While You’re on TDI

New Jersey says your job is protected under state and federal job protection laws while you receive TDI benefits. The federal Family and Medical Leave Act gives eligible employees up to 12 workweeks of job-protected leave for their own serious health condition. Keep your employer informed about your leave, even though the TDI law sets no specific notice period. If you need changes when you return, such as a modified schedule, read about workplace accommodations. If you need time off to care for a family member instead, see how to get paid as a family caregiver, and compare every state’s program on the state disability insurance page.

If your condition will last a year or more, TDI’s 26 weeks won’t be enough. Social Security Disability Insurance (SSDI) covers conditions expected to last at least 12 months, and you can apply while you’re still on TDI. Read the SSDI guide, check your work credits with the eligibility screener, and compare SSDI vs SSI.

For other New Jersey programs, including Medicaid waivers, vocational rehabilitation and the parking placard, see the New Jersey disability help page or how to get a disability parking placard. Other states’ programs are on the California SDI and New York disability benefits guides.

Frequently Asked Questions

Are New Jersey Temporary Disability Benefits Taxable?

Yes, for federal purposes. New Jersey says TDI benefits count as taxable income for federal income tax and FICA, and Social Security and Medicare are withheld from state plan payments. Federal income tax is withheld only if you ask. New Jersey doesn't tax the benefits.

Can I Get NJ Temporary Disability if I'm Unemployed?

You may. New Jersey encourages people who recently became unemployed to apply, and forwards those applications to its Disability During Unemployment section.

Can I Get TDI for a Work Injury?

Contact the Division of Workers' Compensation first. If your employer's workers' compensation carrier denies or stops benefits, you may apply for TDI, but you must file a formal claim petition with the Division and agree to repay TDI if you're later awarded workers' compensation.

How Do I Get Paid?

Approved state plan claims are paid on a Money Network debit card mailed in a plain envelope. Payments usually come every two weeks after the first payment, and funds should be available within three business days of the payment date.

What Is the Most I Can Get on One Claim?

The lesser of one-third of your total base year wages in New Jersey covered employment, or 26 times your weekly benefit. Benefits stop when you recover and return to work, reach that maximum, or receive benefits for 182 days.

Can I Work Part Time While on TDI?

Yes, with your last employer's permission. After at least 7 days in a row of full benefits (not counting the waiting week), you can get partial benefits for up to 8 weeks, or 12 weeks with medical approval. The hours you work are deducted from your weekly rate.

More on State Disability Insurance

• State Disability InsuranceThe state short-term disability and paid medical leave programs, compared
• California SDICalifornia State Disability Insurance: who's covered, benefit amounts and filing a claim
• New York DBLNew York's statutory disability benefits: coverage, weekly amounts and claims
• SSDIHow Social Security Disability Insurance works: work credits, the disability test, the waiting period, amounts and Medicare
• SSIHow Supplemental Security Income works: income and resource limits, the 2026 federal payment, state supplements and Medicaid
• SSDI vs SSIThe differences between SSDI and SSI, side by side, and when you can get both

This guide explains official rules in plain language. It isn't legal advice, and only the agency that runs a program can decide your case.

Sources

1. New Jersey: Temporary Disability Insurance for workers
2. New Jersey: Benefits for expectant and new parents
3. U.S. Department of Labor: Fact Sheet #28, the Family and Medical Leave Act
4. SSA: Qualify for disability benefits