Massachusetts Updates Paid Family and Medical Leave Contribution Rates

By Brian E. Lewis © Jackson Lewis October 4, 2022
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The Massachusetts Department of Family and Medical Leave has announced changes to the employer contribution rates and benefit amounts under the Paid Family and Medical Leave Act (PFMLA), effective Jan. 1, 2023.

Each Oct. 1, the state Department of Family and Medical Leave is required to update employer contribution rates and benefit amounts for the upcoming year. The change in benefit amounts is based on the average weekly wage in the state. The change in contribution rates is to be made to ensure the fund's solvency for paying out benefits.

The following are the announced changes to the PFMLA:

1. The benefit contribution rate for employers has been reduced to 0.63 percent of eligible wages. Currently, the benefit contribution rate is 0.68 percent of eligible wages, which are wages up to the Social Security contribution limit. The specific benefit contribution rates are as follows:

Employers with 25 or more covered workers can withhold 0.11 percent of eligible wages for the family leave contribution. They can withhold 0.208 percent of eligible wages for the medical leave contribution and are responsible for paying 0.312 percent of eligible wages directly.

Employers with 24 or fewer covered workers can withhold 0.11 percent of eligible wages for the family leave contribution. They can withhold 0.208 percent of eligible wages for the medical leave contribution. These smaller employers have no obligation to pay the employer share for medical leave. These new contribution rates apply equally to employers that have private plans, so all employers must review and update their plans and contribution rates for Jan. 1, 2023.

2. The department increased the maximum benefit amount available to individuals to $1,129.82 per week. This benefit is keyed off the state's average weekly wage and is an increase from the current amount, which is $1,084.31 a week.

Brian E. Lewis is an attorney with Jackson Lewis in Boston. © 2022. All rights reserved. Reprinted with permission. 

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