The bill amends the Unemployment Compensation Law of Pennsylvania, specifically altering the calculation of unemployment benefits for eligible employees. It replaces the term "highest quarterly wage" with "average quarterly wage" to determine the weekly benefit rate, which will now be the greater of the amount specified in a benefits table based on the average quarterly wage or fifty percent of the employee's full-time weekly wage. Additionally, if the calculated weekly benefit rate is below $68, the employee will be ineligible for compensation. The average quarterly wage will be calculated by dividing the total wages paid during the highest earning calendar quarter of the base year by four, and the benefits table will be updated accordingly.

For calendar years 2026 and beyond, the bill establishes a new method for determining "highest quarterly wages," which includes calculating the highest wages from a calendar quarter in the base year, adding 130% of the second highest quarter's wages, and averaging the two amounts. It also sets a cap on the weekly benefit rate, limiting it to 63% of total base year wages, with specific exceptions. Furthermore, if the trigger percentage reaches 250% on July 1, 2026, or in subsequent years, the method for determining "highest quarterly wages" will revert to the standard calculation, and section 401(a)(2) will apply, overriding previous provisions regarding benefit rates. The act is scheduled to take effect six months after its passage.