Paid Family Leave (PFL) is an offering available to select New York employees that provides them with the opportunity to take up to 12 weeks of job-protected, partially paid time off for approved reasons. These can include bonding with a newborn, caring for a family member with a serious health condition, or assisting when a family member is to be deployed overseas on active military duty. Although the PFL program has seen multiple changes since its inception in 2018, the focus here is on the updates coming into effect in 2025.

Under PFL, employees are entitled to benefits that are equal to 67% of their average weekly wages or 67% of the prevailing New York State Average Weekly Wage (SAWW), whichever is lesser. Starting from January 1, 2025, the SAWW will rise to $1,759.19. This means the maximum weekly benefits rate for PFL during 2025 will be $1,177.32, which shows an increase of $26.16 from the current benefits cap.

With this enhancement, there will also be an increase in the contributions gathered for the PFL program through payroll deductions, calculated based on each employee’s gross wages per pay period. In 2025, the employee contribution rate will rise from 0.373% to 0.388% of gross wages for each pay period. The contribution cap for individual employees will also increase from $333.25 to $354.53 per year. Employees earning less than the SAWW will continue to contribute less than the annual contribution cap.

Given these upcoming 2025 changes, all employers should start reviewing their Paid Family Leave policies and make necessary adjustments in their payroll systems for the new caps and employee contribution rates, effective from January 1st.

For further information on how to get a hold of Paid Family Leave, consult with experts on the matter. A reliable source of guidance can be found at eddcaller.com, which provides useful advice and guidance for those who wish to know how to get in touch with the right people at PFL.