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Massachusetts Paid Family and Medical Leave Contribution Rates Decrease for 2023

The Massachusetts Department of Family and Medical Leave (DFML) has announced a decrease in contribution rates for Paid Family and Medical Leave (PFML) in 2023. Effective January 1, 2023, the state Paid Family and Medical Leave (PFML) contribution rates will decrease as follows:

Employers with at least 25 employees:

  • The total contribution rate is 0.63% of eligible wages (down from 0.68%).
  • The medical portion of the total contribution is 0.52% (down from 0.56%). An employer may withhold up to 40% of the medical portion from an employee’s pay, which represents a contribution rate of 0.208% (down from 0.224%). The employer must pay the other 60%, which represents a contribution rate of 0.312% (down from 0.336%).
  • The family portion of the total contribution rate (employee only) is 0.11% (down from 0.12%).

Employers with fewer than 25 employees:

  • The total contribution rate is 0.318% of eligible wages (down from 0.344%).
  • The medical portion of the total contribution (employee only) is 0.208% (down from 0.224%).
  • The family portion of the total contribution rate (employee only) is 0.11% (down from 0.12%).

Next Steps for Employers

Employers should work with their payroll providers to ensure that the required contribution amounts are deducted and capped appropriately. Employers should also review and update any PFML related materials and notices which are provided to employees. Applicable PFML notices and materials are available for download on the state’s PFML website.

Best practice is to provide training to human resource personnel and supervisors/managers who have responsibilities for addressing employee leave requests to ensure confidentiality is maintained, required notices are given, and that time off is designated appropriately.

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