Unemployment Insurance Modernization Act of 2025

HB 554 modernizes Maryland's unemployment insurance system by changing how weekly benefit amounts and employer contribution rates are calculated. It requires the Department of Labor to annually publish the state's average annual wage by January 31, using this figure to set two key metrics: the taxable wage base (starting at 20% of the average annual wage in 2028) and the maximum weekly benefit (set at 50% of the average weekly wage from 2028 onward). These changes directly affect unemployed workers receiving benefits and employers paying into the Unemployment Insurance Trust Fund. The bill replaces outdated formulas with a system tied to annual wage data, aiming to adjust benefits and contributions based on current economic conditions.