Department issues important PFML updates

The Massachusetts Department of Family and Medical Leave has issued some updates that are important for employers to know. The department administers the Paid Family and Medical Leave (PFML) law, under which employees are eligible to take up to 26 workweeks of PFML each benefit year for various reasons, including leave for their own serious health condition or the serious health condition of a family member and leave to bond with children after birth, adoption, or placement. In recent weeks, the department issued two important updates regarding these two issues, along with its Fiscal Year (FY) 2023 Report.

The contribution rate is increasing

Employees (and employers at companies with more than 24 employees) fund the PFML program through contributions deducted from their wages, and employees who take PFML are paid a certain percentage of their regular pay up to a maximum based, in part, on the state’s average weekly wage.

Beginning on January 1, 2024, the PFML contribution rate for businesses with 25 or more employees is increasing from 0.63% of wages to 0.88%. Of the 0.88%, 0.18% applies to the family leave portion of the law and may be paid for solely by the employee. The remaining 0.70% is applicable to the medical leave portion of the law, of which 0.28% may be paid for by the employee, with the remaining 0.42% to be paid for by the employer.