New York State Mandated Paid Family Leave

The New York State Department of Financial Services (DFS) has announced updates to the Employer Mandated Paid Family Leave (PFL) benefit, effective January 1, 2025. These changes will impact employee contributions, benefit payouts, and employer payroll processes.

Key Updates for 2025:

🔹 Employee Contribution Rate:

• 2024 Rate: 0.373%

• 2025 Rate: 0.388%

🔹 Additional Adjustments:

• NYS Average Weekly Wage: $1,757.19

• Max. Annual Covered Employee Wage: $91,373.88

• Max. Annual Employee Contribution: $354.53

• Max. Weekly Benefit Payout: $1,177.32

What Does This Mean?

The PFL premium rate is calculated as a percentage of employee wages. With higher wages in 2025, employees will see:

• Higher contribution amounts (adjusted to the new wage ceiling).

• Enhanced benefits, allowing eligible employees to receive up to 67% of the statewide average weekly wage.

Action Required

Employers should ensure payroll systems reflect the new contribution rates for both Paid Family Leave (PFL) and New York State Disability (DBL) by January 1, 2025.

Need Support? Our team is here to help you navigate these changes with confidence. Reach out to us for assistance