The New York State Department of Financial Services has announced changes to the employee contribution rate and benefit amounts under the New York Paid Family Leave Law (“NY PFL”) for 2025.
Effective January 1, 2025, the contribution rate will be 0.388% of an employee’s gross wages per pay period, for a maximum annual contribution of $354.53. This contribution rate reflects an increase from the 0.373% rate in 2024.
In addition, as a result of an increase to the New York State Average Weekly Wage (“NYSAWW”) for 2025, the maximum weekly benefit amount will be $1,177.32 per week. This amount represents 67% of the NYSAWW for 2025, which the Department set at $1,757.19. The 2025 benefit represents an increase from the 2024 benefit of $1,151.16 per week.
The New York State Department of Financial Services evaluates the financial health of the NY PFL program every year and determines the contribution rate and benefit amounts after reviewing claims, demographic, financial and other Paid Family Leave benefits data for calendar years 2018 – 2023 and for the first six months of 2024 for the Paid Family Leave program in New York, consistent with actuarial principles.
In light of the changes, beginning January 1, 2025 employers should ensure that their policies are revised to reflect the increases and should confirm with their payroll providers that the NY PFL contribution rates and maximum amounts are updated in their payroll systems.
Should you have any questions, please contact Ali Law Group.
HRtelligence was created by the team at Ali Law Group, LLC. Should you have any questions or need assistance, please contact Ali Law Group.
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