October 22, 2024
The state has announced the 2025 maximum contribution and benefit rates payable for CT Paid Leave, which is the state’s paid family and medical leave program.
The contribution rate will remain at 0.5% up to the federal Social Security wage contribution cap, which is $176,100 in 2025 (2024: $168,600). Accordingly, an employee's maximum contribution to the state's plan will be $880.50 in 2025 (2024: $843). 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 contribution rate 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 than the private plan rate.
The minimum wage for 2025 was announced to be $16.35/hour. As a result, the maximum weekly benefit amount will increase to $981 from $941.40 effective January 1, 2025, as the weekly benefit is capped at 60 times the Connecticut minimum wage.
For more information about how to calculate an employee’s weekly benefit amount, please visit CT Paid Leave.
PPI Benefit Solutions does not provide legal or tax advice. Compliance, regulatory and related content is for general informational purposes and is not guaranteed to be accurate or complete. You should consult an attorney or tax professional regarding the application or potential implications of laws, regulations or policies to your specific circumstances.
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