The Massachusetts Department of Family and Medical Leave (Department) just announced the 2025 weekly benefit amount and contribution rates for both employers and employees under the state's Paid Family and Medical Leave benefit program, which is funded through a payroll tax.
Effective January 1, 2025, for employers with 25 or more employees, the contribution rate will remain at .88% of eligible wages. This contribution is divided between the employee's payroll or wage withholdings and an employer contribution. Employers may require that up to 100% of the family leave contribution be withheld from the employee's wages (0.18% of eligible wages). In addition, employers can require that up to 40% of the medical leave contribution be withheld from an employee's wages (0.28% of eligible wages). Employers are responsible for contributing the remaining 60% of the medical leave contribution (0.42% of eligible wages).
Employers with fewer than 25 employees must remit an effective contribution rate of 0.46% of eligible wages. This contribution rate is less because small employers are not required to pay the employer share of the medical leave contribution. Small employers are still responsible for collecting and remitting the contributions from the employee's wages but are under no obligation to contribute themselves.
Also, effective January 1, 2025, the maximum weekly benefit will be $1,170.64 per week, an increase from $1,149.90.
The Department has not yet released the posting and notices templates for 2025. We encourage employers to monitor the Department's website.
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