2023 New York Paid Family Leave Premium Rate and Maximum Contribution

The New York Department of Financial Services (DFS) announced the applicable premium rate and maximum employee contribution for Paid Family Leave (PFL) coverage beginning January 1, 2023.

The state’s PFL program is intended to provide eligible employees with a portion of their wages while taking time off to bond with a child, care for a family member with a serious health condition or handle personal matters arising from an immediate family member in the Armed Forces being called to active duty.

The PFL premium rate, like the benefit amount, is set as a percentage of an employee’s covered wage, so the premium paid by an employee depends on how much an employee earns. Accordingly, those earning less will pay a lower premium, and those earning more will pay a higher premium as they are eligible for higher benefits, up to the maximum PFL benefit of 67% of the statewide average weekly wage, which is $1,688.19 for 2023.

The premium rate for PFL benefits for coverage beginning January 1, 2023, was set by DFS at 0.455% of an employee’s wages each pay period up to and not to exceed an annual maximum employee contribution of $399.43. The contribution rate and maximum contribution amount are lower than in 2022.

Employers should work with their carriers and payroll providers to ensure the premium rates are properly implemented and communicated. Additionally, employers should be aware that the PFL At-A-Glance, Statement of Rights, Model Language for Employee Materials and Payroll Deduction Notice were updated for 2023.

For additional changes on updates to PFL occurring in 2023, please see our November 9, 2021, article and ask your consultant for a copy of our “New York Paid Family Leave: A Guide for Employers.”

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