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April 23, 2020

Unemployed Mainers may get a 'raise,' and it's the highest in the US

The tens of thousands of Mainers seeking unemployment compensation because of the pandemic may soon get a pleasant surprise. Federal stimulus money may result in benefit checks totaling more than the workers’ normal wages.

In fact, Maine residents on average will receive unemployment pay that exceeds their regular earnings by over 20% — the largest portion in any state, according to an analysis published Thursday by the New York Times.

The federal Coronavirus Aid, Relief and Economic Security (CARES) Act, which became law March 27, tacks an extra $600 onto the weekly benefits unemployed Americans receive. That amount is intended to fill the gap between the average unemployment benefit across the U.S. and the average wage.

But because both unemployment benefits and average wages differ from state to state, some do better than others.

In Maine, the pre-pandemic benefit equaled 48% of the average paycheck, according to the Times. The federal bonus, which the state Department of Labor is starting to mete out this week, will bring that level to about 125% of the average wage.

Nationwide, jobless residents of 35 other states will also receive more than the average wage. After Maine, New Mexico gets the next-highest increase. Vermont’s increase, to about 120%, ranks No. 8 in the country.

Among other New England states, Connecticut and Rhode Island receive slightly more than their average wages, according to the analysis. Massachusetts receives slightly less. And the state where residents receive the least as a portion of their average wage, 83%, is New Hampshire. That’s partly because unemployment benefits there previously covered just 30% of wages. 

But Maine workers, beware — the bonus is temporary. Under the CARES Act, the additional benefits expire July 31.

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