The New York Department of Financial Services (DFS) has announced that the Paid Family Leave (PFL) contribution rate for 2026 will increase.
Key Changes for 2026
- Contribution Rate. 0.432% of an employee’s gross wages per pay period (up from 0.388% in 2025).
- Annual Maximum Contribution. $411.91(up from $354.53 in 2025).
- New York State Average Weekly Wage (NYSAWW). $1,833.63 (up from $1757.19 in 2025).
- Maximum Weekly Benefit. $1228.53 (up from $1177.32 in 2025).
Employer Responsibilities
Employers are required to withhold the PFL contribution from employees’ paychecks, in addition to displaying the PFL-120 Notice of Compliance in a prominent workplace location and making it available electronically.
Next Steps for Employers
To ensure compliance with the 2026 PFL changes, employers should:
- Update Payroll Systems: Modify payroll systems to reflect the new contribution rate.
- Notify Employees: Inform employees about the increased PFL contribution and provide the Notice of Employee Payroll Deduction.
- Obtain Notice of Compliance: Obtain the PFL-120 Notice of Compliance from the insurance carrier and post it in the workplace as well as make it available electronically.
