The Massachusetts Department of Family and Medical Leave (DFML) has released its annual updates for the Paid Family and Medical Leave (PFML) program, setting the contribution rates and maximum weekly benefit amount for 2026. These changes, which take effect on January 1, 2026, are crucial for Massachusetts employers to review for continued compliance.
Steady Contribution Rates Maintained
For the third consecutive year, the overall PFML contribution rate will remain the same for both large and small employers.
- Employers with 25 or More Covered Individuals: The total contribution rate on eligible wages remains at 0.88 percent. This contribution can be split between covered individuals’ payroll withholdings and an employer contribution. Employers may withhold 0.18% of eligible wages for family leave contributions and 0.28% for medical leave contributions. In addition, employers are responsible for paying 0.42% of eligible wages toward the medical leave portion.
- Employers with Fewer than 25 Covered Individuals: The effective contribution rate remains at 0.46% of eligible wages. Smaller employers are not required to pay the employer share of the medical leave contribution. Employers may withhold 0.18% of eligible wages for family leave contributions and 0.28% for medical leave contributions. Smaller employers are not required to pay the employer portion of the medical leave contribution.
Maximum Weekly Benefit to Increase
The maximum weekly PFML benefit will see an increase for 2026. Effective January 1, 2026, the maximum weekly benefit an employee may receive will rise from $1,170.64 to $1,230.39. This adjustment is a routine annual update based on the statewide average weekly wage. The State Average Weekly Wage (SAWW) used for the 2026 benefit calculation will be $1,922.48.
Next Steps for Employers
To ensure a smooth transition and compliance with the 2026 updates, Massachusetts employers should take the following proactive steps:
- Review Payroll Systems: Confirm that your payroll provider or internal systems are configured to correctly apply the new maximum weekly benefit amount for 2026, even though the overall contribution rates are unchanged.
- Update Notices for New Hires: Continue to provide notice of the contribution rates to new hires within 30 days of their start date.
- Monitor for DFML Templates: The DFML is expected to release the updated 2026 posting and notice templates in November 2025; monitor the DFML website and update your mandatory workplace poster and new hire notices promptly.
- Verify Private Plans: Employers that utilize a private PFML plan should ensure the benefits are “equal to or greater than” the state program, specifically verifying compliance against the higher maximum weekly benefit.
