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The Massachusetts Department of Family of Medical Leave (DFML) recently announced that its rates will decrease in 2023 and its weekly benefit maximum will increase. This follows similar adjustments made in 2022 after the first year of Massachusetts’ Paid Family and Medical Leave (PFML).
As of January 2023, employers with 25 or more covered employees will be required to contribute 0.63% of eligible wages, down from 0.68% for 2022. The contribution may be split between covered individuals’ payroll or wage withholdings and an employer contribution.
The PFML law follows the unemployment statute, M.G.L. c. 151A, §1, to determine what counts as wages. Employers should base their contributions on the same wage base that is reported to the Department of Unemployment Assistance.
Employers with fewer than 25 covered employees will be required to contribute 0.318% of eligible wages, down from 0.344 % in 2022. This contribution rate is lower because small employers are not required to pay an employer share of the medical leave contribution – it may be passed on to employees. Small employers may elect to cover some or all of the covered employees’ share.
As of January 2023, the maximum weekly benefit will increase from $1,084.31 to $1,129.82. The weekly amount an individual is paid while on leave is determined by a formula incorporating their average weekly wage and the state average weekly wage (SAWW, currently $1,694.24). Specifically, the portion of the employee’s average weekly wage that is equal to or less than 50% of the SAWW is replaced at a rate of 80%, and the portion of the employee’s average weekly wage that is more than 50% of the SAWW is replaced at a rate of 50%.
The DFML benefits calculator can be used to estimate the weekly benefit an individual will receive during a PFML leave.
The DFML requires employers to update its PFML poster annually, and to provide notice to employees of the adjusted rate. The 2023 notices will soon be available on the DFML website.
AIM members with questions about PFML rates and benefits may call the AIM Employer Hotline at 800-470-6277.
