The Massachusetts Department of Family and Medical Leave has announced updates to the Paid Family and Medical Leave (PFML) program for 2025. These changes affect both employers and employees.
Contribution Rates
- Employers with 25 or More Employees: The contribution rate will remain at 0.88% of eligible wages. This rate is divided between employee payroll withholdings and employer contributions.
- Employers with Fewer Than 25 Employees: The effective contribution rate will remain at 0.46% of eligible wages. Small employers are not required to contribute but must still collect and remit contributions from employee wages.
Maximum Weekly Benefit
The maximum weekly benefit for 2025 will increase to $1,170.64.
Next Steps
To ensure compliance with the January 1, 2025, PFML updates, employers should:
- Update Payroll Systems: Adjust payroll systems to reflect the new maximum weekly benefit amount.
- Review PFML Policies: Update PFML policies and communication materials to align with the 2025 changes.
- Notify Employees: Inform employees about the new rates and benefits as required by law. The Department has not yet released the posting and notices templates for 2025; however, employers may periodically check for availability by monitoring the Department’s website.
- Evaluate Private Plans: Ensure that private plans comply with the new maximum weekly benefit amount.
- Consider Leave Policy Reviews: Review overall leave policies to ensure compliance with recent legal decisions regarding benefit accrual during PFML.
By taking these steps, employers can maintain compliance with PFML regulations and effectively manage their workforce.
HR Works Can Help
Managing employee leaves of absence is overwhelming and the various laws can be difficult to navigate, especially when leave is not your primary focus. The experts at HR Works can manage the complexities of compliance when it comes to all the changing state leave laws and more. To learn more about these services and how to leverage our compliance expertise and support, please contact us at info@hrworks-inc.com or call 1-877-219-9062.
