Massachusetts PFML Update: Contribution Rates and Benefit Amounts for 2023

Seyfarth Synopsis: The Massachusetts Department of Family and Medical Leave announced updates to contribution rates and weekly benefit amounts under the Paid Family and Medical Leave law, effective January 1, 2023.

The Massachusetts Department of Family and Medical Leave (DFML) has announced its annual updates to contribution rates and maximum weekly benefit amounts under the Massachusetts Paid Family and Medical Leave (PFML) Law for 2023.

Weekly Benefit Amount: During 2023, the maximum weekly PFML benefit which eligible employees may receive will be $1,129.82 per week. The benefit amount has increased from the 2022 maximum of $1,084.31 per week.

Contribution Rates: For 2023, the overall PFML contribution rate has decreased from 0.68% to 0.63% of eligible wages for employers with 25 or more covered individuals. The PFML contribution rate for smaller employers – fewer than 25 covered individuals – decreased from 0.344% to 0.318%. Below is additional detail about how those contributions are apportioned between employers and employees.

Employers with 25 or More Covered Individuals: The 0.63% contribution rate is split between required medical leave contribution of 0.52% and family leave contribution of 0.11% of an individual’s eligible wages. Employers may withhold up to 0.11% of eligible wages for an individual’s family leave contribution and up to 0.208% of eligible wages for an employee’s medical leave contribution. Employers must contribute the remaining 0.312% of eligible wages on behalf of employees for medical leave (i.e., the employer share).

Employers with Fewer than 25 Covered Individuals: The 0.318% contribution rate is split between medical leave contribution of 0.208% and family leave contribution of 0.11%. Employers may withhold the entire contribution from an individual’s eligible wages. Unlike larger employers, smaller employers are not required to contribute towards an individual’s medical leave contribution amount.

These changes will be effective as of January 1, 2023. Employers should ensure that their PFML policies and payroll systems reflect these changes.

We will continue to monitor any developments with the PFML Law.  Please reach out to one of the authors or your Seyfarth attorney with any questions.