How Much Are Minnesota Unemployment Benefits?

Unemployment benefits in Minnesota offer temporary financial support to individuals who have lost their jobs through no fault of their own. These benefits provide a partial wage replacement, helping eligible workers meet financial obligations while actively seeking new employment. Understanding how these benefits are determined and what factors influence the payment amount is important for residents navigating job transitions.

Determining Eligibility for Payments

To qualify for unemployment benefits in Minnesota, individuals must meet specific eligibility requirements. A primary consideration is monetary eligibility, which depends on wages earned during a defined “base period.” This period typically covers the first four of the last five completed calendar quarters before an unemployment claim is filed. Applicants must have earned a minimum amount during this base period, specifically at least 5.3% of the state’s average annual wage.

The reason for job separation is another important factor. Benefits are generally available to those unemployed due to circumstances outside their control, such as a layoff or a reduction in force. Conversely, individuals who voluntarily quit their jobs or are terminated for misconduct typically do not qualify. However, exceptions exist for certain good causes, which may include leaving due to an unsafe work environment, a serious family illness, or to escape domestic violence.

Beyond past earnings and the reason for unemployment, claimants must also demonstrate an ongoing ability and availability to work. This means they must be physically and mentally capable of employment and ready to accept suitable job offers without delay. Claimants are expected to actively search for new employment each week they receive benefits. Maintaining a record of job search efforts is recommended, as the Department of Employment and Economic Development (DEED) may verify these activities.

Calculating Your Weekly Benefit Amount

The weekly benefit amount (WBA) in Minnesota is primarily calculated based on an individual’s past earnings during their base period. The Minnesota Department of Employment and Economic Development (DEED) determines the WBA as approximately 50% of the claimant’s average weekly wage. This calculation often focuses on the quarter within the base period where the claimant earned the highest wages, known as the “high quarter.” The intent is to provide a benefit amount that reflects the claimant’s typical earning capacity before becoming unemployed.

Minnesota sets both a minimum and a maximum for the weekly benefit amount. The maximum weekly unemployment benefit for 2025 is $914. Regardless of how high an individual’s past earnings were, the weekly payment will not exceed this state-mandated maximum.

For example, if an individual’s average weekly wage during their high quarter was $1,000, their calculated weekly benefit amount would be $500 (50% of $1,000). If another individual’s average weekly wage was $2,000, their calculated weekly benefit would be $1,000. However, since the maximum WBA for 2025 is $914, this individual would receive the cap of $914, not $1,000.

Understanding Your Benefit Duration

Unemployment benefits in Minnesota are designed to provide temporary financial support, and therefore, their duration is limited. The standard maximum number of weeks an individual can receive regular unemployment benefits in Minnesota is 26 weeks. This duration provides a safety net, allowing claimants time to secure new employment. The total amount of benefits an individual can receive over their claim year is capped, typically at the maximum number of weeks multiplied by their weekly benefit amount, or a percentage of their total base period wages, whichever results in a lower overall payout.

Claimants must file weekly requests for payment to receive benefits for each eligible week. The benefit year, which is the one-year period following the initial claim’s effective date, dictates the timeframe within which these 26 weeks of benefits can be claimed. Once the total available funds are exhausted or the benefit year ends, whichever comes first, benefit payments will cease.

In certain economic circumstances, such as periods of significantly high unemployment, extended benefits may become available. These programs, which can be state or federally funded, can provide additional weeks of benefits beyond the standard 26 weeks. However, the availability of extended benefits is not guaranteed and depends on specific economic triggers at both state and federal levels.

Adjustments to Your Benefit Payments

Several factors can lead to adjustments or reductions in the actual payments received. Unemployment benefits are considered taxable income at both the federal and state levels. Claimants have the option to have federal income tax withheld from their weekly payments to avoid a large tax liability at the end of the year.

Working part-time while receiving unemployment benefits can also reduce the weekly payment. Minnesota’s rules permit partial benefits if an individual works fewer than 32 hours in a week and their gross earnings remain below their weekly benefit amount. If a claimant works 32 or more hours in a week, or if their gross earnings for a week are equal to or exceed their weekly benefit amount, they will not receive unemployment benefits for that week. All earnings, including those from temporary or part-time work, must be accurately reported in the week they are earned, not when they are paid, to prevent overpayments.

Other forms of income or specific circumstances can also lead to deductions or disqualification periods. For instance, severance pay received from a former employer can delay the start of unemployment benefits for the period the severance covers. Similarly, certain pension payments, workers’ compensation benefits, or a portion of Social Security benefits are deducted from the unemployment WBA. Failing to actively search for work or refusing an offer of suitable employment can also result in temporary or permanent disqualification from receiving benefits.