Update Applicable to:
All employers in the state of Massachusetts.
The new contribution rates and benefit amounts for the Massachusetts Department of Family and Medical Leave (DFML) will go into effect on January 1, 2023.
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What are the details?
Employers must notify current, and new employees of the 2023 updates to contribution rates and weekly benefit amounts under PFML Law
Weekly Benefit Amount
In 2023, the maximum weekly PFML benefit eligible employees may receive will be $1,129.82 per week. The benefit amount has increased from the 2022 maximum of $1,084.31 per week.
For 2023, the overall PFML contribution rate has decreased from 0.68% to 0.63% of eligible wages for employers with 25 or more covered individuals. The PFML contribution rate for smaller employers – fewer than 25 covered individuals – decreased from 0.344% to 0.318%. Below is additional detail about how those contributions are apportioned between employers and employees.
Employers with 25 or More Covered Individuals
The 0.63% contribution rate is split between a required medical leave contribution of 0.52% and a family leave contribution of 0.11% of an individual’s eligible wages. Employers may withhold up to 0.11% of eligible wages for an individual’s family leave contribution and up to 0.208% for an employee’s medical leave contribution. Employers must contribute the remaining 0.312% of eligible wages on behalf of employees for medical leave (i.e., the employer share).
Employers with Fewer than 25 Covered Individuals
The 0.318% contribution rate is split between the medical leave contribution of 0.208% and the family leave contribution of 0.11%. Employers may withhold the entire contribution from an individual’s eligible wages. Unlike larger employers, smaller employers are not required to contribute towards an individual’s medical leave contribution amount.
Under the PFML Law, employers are required to notify their current and new employees of these updates and to hang the updated poster in the workplace. In doing so, employers should notify employees consistently with their customary method for informing employees of other policy changes and updates. Notice should be made in a manner that is easily accessible or available to employees.
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For more information, please see the links below:
Massachusetts Department of Family and Medical Leave (DFML)
Employee Toolkit for Paid Family and Medical Leave
What do employers need to do?
Employers should review the links provided above, prepare to adjust their contribution rates, and provide their employees the new notices and post them in a conspicuous location.