Massachusetts Announces Paid Family and Medical Leave (PFML) Rates and Benefit Cap for 2025

This Alert is relevant to employers with one or more employees in Massachusetts

The Massachusetts Department of Family and Medical Leave (DFML) has published the PFML contribution and maximum benefit rates for 2025.  In welcome news, the rates will remain the same as 2024 rates.

Contribution Rate

Like 2024, beginning in January 2025, employers with 25 or more covered individuals who pay into the public PFML plan must send the department a contribution of 0.88% of covered employees’ eligible wage.

The contribution is apportioned between family leave and medical leave, with 0.70% going to medical leave and the remaining 0.18% going to family leave. Employers may withhold the following amounts from covered employees’ wages:

• Up to 100% of the family leave contribution (0.18% of an employee’s wages)
• Up to 40% of the medical leave contribution (0.28% of an employee’s wages)

Employers are responsible for contributing the remaining 60% of the medical leave contribution (0.42% of wages).

Employers with fewer than 25 covered individuals must send an effective contribution rate of 0.46% of eligible wages. This contribution rate is less because small employers are not required to pay the employer’s share of the medical leave contribution.

Benefit Rate

Beginning in January 2025, the maximum total amount a covered employee will be allowed to receive in PFML benefits is $1,170.64 per week, up from $1,149.90 in 2024. The rate is based on the state average weekly wage.
2025 Poster and Employee Notices:

Employers will be required to update their posters and notify employees of the rate increase by December 1, 2024. We will send out an Alert with the updated poster and notices when they are released by the DFML.

Employers with Private Plans:

• Private Plan carriers may still adjust rates even though the PFML rates did not change.  
• If your private plan exemption renews on January 1, 2025, be sure to obtain the confirmation of insurance document so you may apply for your exemption (using each EIN’s MassTaxConnect Account) at least 30 days before the December 31 deadline.

If you have any questions, please contact your IMA service team or visit the Massachusetts Department of Family and Medical Leave website.

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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