The Massachusetts Department of Family and Medical Leave (DFML) has recently published two significant updates to the Paid Family and Medical Leave (PFML) program, as follows.
Increase in Maximum Benefit:
As of October 1, 2021, the new Massachusetts average weekly wage increased to $1,694.24, up from $1,487.78. Therefore, beginning in January 2022, the maximum total amount that an eligible worker can receive in PFML benefits will be $1,084.31 per week. (Currently, the maximum benefit amount is $850 per week).
Change in Contribution Rate:
Although weekly benefits will be increasing for many eligible workers receiving PFML benefits as of January 1, 2022, for employers with more than 25 covered individuals, the contribution rate will decrease from .75% to .68%.
For employers with fewer than 25 covered individuals, the contribution rate will decrease from .378% of eligible wages to .344% of eligible wages, which are withheld from covered individual’s earnings.
Private PFML Plans:
Employers with private plans should review their policies to make sure they are still in compliance and are providing benefits that are at least as generous as PFML benefits provided by the Department.
Notice Requirements:
New notice postings should be available shortly. For more information, see https://www.mass.gov/orgs/department-of-family-and-medical-leave
This client alert aims to provide information on recent changes in the Paid Family and Medical Leave laws and is not meant as legal advice.