HB 1995 — An Act amending the act of December 5, 1936 (2nd Sp.Sess., 1937 P.L.2897, No.1), known as the Unemployment Compensation Law, in compensation, further providing for rate and amount of compensation.

PRINTER'S NO.   2516

                      THE GENERAL ASSEMBLY OF PENNSYLVANIA



                          HOUSE BILL
                          No. 1995
                                                Session of
                                                  2025

     INTRODUCED BY DAWKINS, OCTOBER 24, 2025

     REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, OCTOBER 24, 2025


                                     AN ACT
 1   Amending the act of December 5, 1936 (2nd Sp.Sess., 1937
 2      P.L.2897, No.1), entitled "An act establishing a system of
 3      unemployment compensation to be administered by the
 4      Department of Labor and Industry and its existing and newly
 5      created agencies with personnel (with certain exceptions)
 6      selected on a civil service basis; requiring employers to
 7      keep records and make reports, and certain employers to pay
 8      contributions based on payrolls to provide moneys for the
 9      payment of compensation to certain unemployed persons;
10      providing procedure and administrative details for the
11      determination, payment and collection of such contributions
12      and the payment of such compensation; providing for
13      cooperation with the Federal Government and its agencies;
14      creating certain special funds in the custody of the State
15      Treasurer; and prescribing penalties," in compensation,
16      further providing for rate and amount of compensation.
17      The General Assembly of the Commonwealth of Pennsylvania
18   hereby enacts as follows:
19      Section 1.     Section 404(e)(2)(v) and (vi) of the act of
20   December 5, 1936 (2nd Sp.Sess., 1937 P.L.2897, No.1), known as
21   the Unemployment Compensation Law, are amended to read:
22      Section 404.     Rate and Amount of Compensation.--* * *
23      (e)    * * *
24      (2)   * * *
25      (v)   If, on July 1, [2025] 2027, the trigger percentage
 1   determined under section 301.7(a) is less than two hundred fifty
 2   per centum (250%), the following shall apply:
 3      (A)    Notwithstanding the definition of "highest quarterly
 4   wages" in subsection (b), but subject to subclause (vi),
 5   "highest quarterly wages" for purposes of this section for
 6   calendar years [2026] 2028 and thereafter shall be the average
 7   of the total wages (computed to the nearest dollar), which were
 8   paid to the employe computed as follows:
 9      (I)    The wages paid to the employe in that calendar quarter
10   in which such total wages were highest during the base year
11   shall be calculated.
12      (II)    The amount calculated under division (I) shall be added
13   to an amount equal to one hundred thirty per centum (130%) of
14   the wages paid to the employe in the calendar quarter in which
15   such total wages were the second highest of any calendar quarter
16   during the base year, provided that the amount added under this
17   division (II) may not be greater than the wages paid to the
18   employe during the highest calendar quarter under division (I).
19      (III)    The sum calculated under division (II) shall be
20   divided by two.
21      (B)    Notwithstanding section 401(a)(2), and except as
22   provided in subsections (a)(3) and (e)(1) and (2), section
23   401(a) shall require that the second entry in Part A of the
24   table for the determination of rate and amount of benefits, on
25   the line on which there appears the employe's weekly benefit
26   rate, does not exceed sixty-three per centum (63%) of the
27   employe's total base year wages.
28      (vi)    Notwithstanding the provisions of subsection (b) and
29   subclause (v) if, on July 1, [2026] 2028, or July 1 of any
30   subsequent year, the trigger percentage determined under section

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1   301.7(a) is at least two hundred fifty per centum (250%), the
2   following shall apply:
3      (A)   "Highest quarterly wages" for the subsequent calendar
4   year and thereafter shall be determined as provided in
5   subsection (b) and not as provided in subclause (v).
6      (B)   Section 401(a)(2) shall apply and not subclause (v)(B).
7      * * *
8      Section 2.   This act shall take effect immediately.




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