SB 116 revises Indiana’s unemployment insurance benefit formulas for claims filed after June 30, 2025. The bill updates the definition of “wage credits” and sets a new wage-credit cap of $10,625 for quarters beginning after that date. It also replaces the current 47% of prior average weekly wage formula with a return to a wage-credit-based calculation: 5% of the first $2,000 of the highest quarter of wage credits in the base period, plus 4% of the remaining wage credits in that quarter.
The bill raises the maximum weekly unemployment benefit from $390 to $445 for most claimants beginning with initial claims filed after June 30, 2025. In addition, SB 116 creates a new dependent allowance for eligible claimants, providing $50 per week per dependent, up to a maximum of $150 per week. The bill defines who qualifies as a dependent, including certain spouses, children, adopted children, stepchildren, children placed for adoption, disabled adult children, and court-appointed wards.
Impact
SB 116 would amend Indiana Code chapter 22-4, which governs unemployment compensation, by changing how wage credits are defined and how weekly benefits are calculated for new claims after June 30, 2025. It would increase the maximum weekly benefit amount, add a dependent-based supplemental benefit, and establish new statutory definitions and eligibility rules for those dependent payments. Employers and the unemployment insurance system could be affected through higher potential benefit payouts, while eligible unemployed workers with dependents could receive larger weekly benefits.
Sentiment
Based on the bill text and the absence of recorded committee testimony or votes in the provided materials, the bill appears to be a policy-driven update intended to increase unemployment benefit adequacy. The overall direction is expansionary, suggesting support for unemployed workers and families, but there is no direct evidence in the provided record of formal support or opposition from legislators, stakeholders, or committee members.
Contention
The main policy issues likely to arise from SB 116 are the higher weekly benefit cap, the shift back to a wage-credit-based formula, and the new dependent allowance. Potential supporters would likely emphasize improved income support for unemployed workers and families with children or other dependents. Potential opponents could focus on increased costs to the unemployment insurance system, possible employer tax implications, and whether the expanded benefit structure could affect program solvency or incentives to return to work. No specific contested points are documented in the provided transcripts or vote history.