2023 Paid Family and Medical Leave Information Announced

The state has announced the 2023 maximum contribution rates and benefit rates payable for Paid Family and Medical Leave (PFML).

The contribution rate will stay at 0.5%, up to the Social Security wage contribution cap, which is $160,200 for 2023. Accordingly, an employee’s maximum contribution in 2023 to the state’s plan will be $801 for the year. For this purpose, wages used to determine earnings for FICA purposes are counted and may include salary or hourly pay, vacation pay, holiday pay, tips, commissions and severance pay.

This rate information does not apply to private plans; however, private plan coverage cannot cost employees more than what they would be required to pay under the state plan. If the private plan rate exceeds the state plan rate, the employer would need to cover the amount exceeding the state rate. If the private plan is lower than the state rate, employees could not be charged more that the private plan rate.

For a covered employee with average weekly wages (AWW) less than or equal to the state’s minimum wage multiplied by 40, which is $560 (increasing to $600 on June 1, 2023), the weekly benefit rate payable under the PFML will be 95% of the employee’s AWW. For wages exceeding the state’s minimum wage multiplied by 40, the weekly benefit rate payable will be increased by 60% of the excess amounts. For example, the weekly benefit payable in June 2023 for an employee with AWW of $800 would be 95% of their first $600 in earnings ($570), plus 60% of their next $200 in earnings ($120), for a total of $690 in weekly compensation. The benefit rate is capped at 60 times the state’s minimum wage, which is $840 as of July 1, 2022, and will increase to $900 on June 1, 2023.

For more information, please visit the PFML website. In addition, download our publication, Connecticut Paid Leave Program: A Guide for Employers.