Paid Family & Medical Leave premium rates change starting Jan. 1, 2025
Premiums, collected from employees and employers through quarterly reporting, fund the Paid Leave program. By law, the Employment Security Department (ESD) recalculates the Paid Leave premium rate annually in October . We adjust the premium rate based on premiums contributed and benefits paid during the previous year. Starting Jan. 1, 2025: The premium rate will increase to 0.92%. Employers will pay 28.48% of the total premium and employees will pay 71.52%. Businesses classified by ESD as having fewer than 50 employees for the 2025 calendar year are not required to pay the employer portion of the premium. However, you must still collect the employee premium or pay employees’ premiums on their behalf. Next steps for employers Notify your employees the new rate applies to wages paid on or after Jan. 1, 2025. We will update the employer toolkit, mandatory poster and paystub insert in early November. These resources are available on the Employer Ro...