The New York Department of Financial Services (DFS) has announced that the Paid Family Leave (PFL) contribution rate for 2025 will increase.
Key Changes for 2025
- Contribution Rate: 0.388% of an employee’s gross wages per pay period (up from 0.373% in 2024).
- Annual Maximum Contribution: $354.53 (up from $333.25 in 2024).
- New York State Average Weekly Wage (NYSAWW): $1757.19 (up from $1,718.15 in 2024).
- Maximum Weekly Benefit: $1177.32 (up from $1,151.16 in 2023).
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
To ensure compliance with the 2025 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 required 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.
