1. Home
  2. Producers
  3. Employers
  4. Members
  5. About
  6. Blog
  7. Contact
  8. Paid Leave

How Much Does
NJ Temporary Disability Insurance Cost?

The cost of Temporary Disability Insurance (TDI) depends on each employer group’s particular claims experience and composition, since both the employee and employer taxable wage base play a key role in the premium calculation. In New Jersey, both the employer and employee contribute to the TDI premium, regardless of whether coverage is through the State Fund or an approved private plan.

The State of NJ does, however, set a maximum of how much an employer may ask employees to contribute to the premium. The taxable wage base for employer and employee, and maximum employee contribution get updated annually and are usually announced in the fall for the following calendar year.


Two people meeting by the desk

For calendar year 2024, the maximum employee contribution rate is set at 0.0%.

The updated taxable wage base for employers is set at $42,300 for 2024.

Employee Contribution Rate 0.0%
Employee Taxable Wage Base $161,400
Employee Maximum Contribution $0.00 per year
Employer Taxable Wage Base $42,300

How It Works for Fully-insured Private Plans:

As an approved private plan provider, ShelterPoint’s premium is comprised of two rates, an employee rate and an employer rate. The two rates together are often referred to as the “Combined Rate”. The employee rate is not automatically the same as the maximum employee contribution. Depending on the experience of your group, the employee rate can never be higher than the maximum employee contribution rate. If the Combined Rate comes in higher than the maximum amount you can withhold from your employees, the difference represents the employer rate. In these situations, you, as the employer, are responsible for funding the remainder of the Temporary Disability Insurance premium.


Bookmark icon
TDI Expert Tip:
  1. With private coverage, the same maximum employee contribution as set by the State still applies.
  2. If you are withholding employee contributions, please remember to adjust your employees’ contributions each January to the new maximum contribution percentage.
  3. Adjust contributions in January even if your policy renews later in the calendar year, e.g. if your policy renews on April 1, your experience will be reviewed to determine your updated premium then.
  4. You are not obligated to take any contributions at all, i.e. you may fund a higher share of the employee rate or the entire employee rate.

Why Choose a Fully-insured Private Plan?

Insurance carriers have built expertise and scalability around administering and paying claims. This focus may bring other advantages such as faster claims turnaround and dedicated claims service – potentially resulting in a better insurance experience for employees.  Learn more about private plans here - including a step-by-step guide on how to apply.

Rest assured, Private Plan benefits must be equal to or more generous than the State Fund.


Learn More About NJ Temporary Disability Insurance

Military family reunion
Learn More About ShelterPoint

Statutory benefit programs are what we do.

We have built the experience, scalability, and agility to expertly manage this type of coverage and continuously expand our own capabilities to provide our clients with smooth service from onboarding to claims.

Become a ShelterPoint Producer

Get started

Get a Quote

Get started

Download a Brochure

Download now

With decades of experience in helping keep people INSURED,
rest ASSURED: you have found the specialists you can turn to.

Stay in The Know

At ShelterPoint, we stay on top of all the latest news, updates, and information about Paid Family & Medical Leave,
 so we can pass it on to you. Sign-up for updates now to stay in the know!

Sign-Up for Updates

*The ShelterPoint family of companies operates under the “ShelterPoint” name strictly as a marketing name, and no legal significance is expressed or implied. The ShelterPoint family of companies consists of ShelterPoint Life Insurance Company, a NY-domiciled carrier, and its wholly-owned subsidiary ShelterPoint Insurance Company, a FL-domiciled carrier, depending on the state. ShelterPoint is a registered service mark.

Underwritten by: ShelterPoint Life Insurance Company (principal office in Garden City, NY) in: NJ (form# TDB-P-NJ)

This page is for informational purposes only and is not intended to provide legal counsel. Please consult with an appropriate professional for legal and compliance advice.

The information on this page is not intended as an offer of coverage (“Invitation to Contract”). It is for illustrative purposes only, providing a general overview of the services described. It is not a contract. Available in NJ only. The Temporary Disability Benefits (TDB) Law (Temporary Disability Benefits law (P.L.1948, c.110 (C:43-21-25 et seq.) governs this private plan and its interpretation and administration. All coverage extends up to TDB Law limits reflected in this policy. Please refer to the policy and TDB law for coverage details, a complete listing of covered services, provisions, conditions, exclusions, and terms under which the policy may be continued or cancelled. In the event of conflicting information with the policy and applicable TDB Law, the policy and TDB Law will take precedence over what is shown in this material. Claim payment is not guaranteed; benefit amount depends on wages. Policies have a statutory 7-day waiting period.


Back To Top