Maine Paid Family and Medical Leave – Payroll Contributions to Start in 2025

In 2023, Maine passed a Paid Family and Medical Leave law (PFML) providing eligible employees with up to 12 weeks of paid, job-protected family and medical leave. The Maine Department of Labor created a helpful webpage with helpful information including the required PFML poster.

Which employers must comply? Employers who employ 1 or more individuals in Maine.

How is the Maine PFML funded? It’s funded by employer and employee payroll taxes. All funds will be pooled to pay for future claims and other administrative costs.

Employers with 15 or more Maine Employees: If there are 15 or more Maine employees paid in 20 or more of the weeks, your contribution premium will be 1.0% of wages up to the 2025 Social Security wage base of $176,100. You may withhold up to half of the premium from your employees’ wages.

Employer with less than 15 Maine Employees: Your contribution premium will be 0.5% of wages of wages up to the 2025 Social Security wage base of $176,100. You may withhold all or a portion of the contribution from your employees’ wages.

When will contributions start? Payroll contributions will begin with pay dates on or after January 1, 2025.

When can employees start filing claims under the Maine PFML? Benefits are payable starting May 1, 2026.

Can employers secure a private plan and be exempt from the state PFML tax? Yes. Plan exemptions will be available starting April 1, 2026.

Employers can review more FAQs here. Maine Department of Labor has also created an overview for employers that is helpful to determine how to count employees, register in the Paid Leave Portal and more.

Next Steps for Employers:

• Employers must place this poster in the workplace by January 1, 2025, where workers can easily see it.
• Employers should start withholding payroll contributions beginning with pay dates on or after January 1, 2025.
• For employers who want to explore private plan options, contact your benefits broker.

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IMA will continue to monitor regulator guidance and offer meaningful, practical, timely information. This material should not be considered as a substitute for legal, tax and/or actuarial advice. Contact the appropriate professional counsel for such matters. These materials are not exhaustive and are subject to possible changes in applicable laws, rules, and regulations and their interpretations.

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