Massachusetts Paid Family and Medical Leave (MAPFML) Update

Massachusetts Paid Family and Medical Leave (MAPFML) Update

The Massachusetts Department of Family and Medical Leave has released important updates for 2025 regarding the cost of contributions for employer groups enrolled in the public program and the weekly benefit maximum applicable to public and private plans.

Contribution Rates for 2025
Effective January 1, 2025, the total contribution rate for the public plan, for employers with 25 or more employees, will remain at the current rate 0.88% of eligible wages. Despite a significant rise in the number of claimants and the total dollars paid out in claims compared to the prior year, the state feels that the current funding level will be enough to cover claims in the next calendar year.

Contribution Structure (25 or more employees):

• Total Contribution: 0.88%
  • Medical Contribution: 0.70%
    • Employer Share:0.42%
    • Employee Share: 0.28%
  • Family Contribution: 0.18%
    • Employer Share: 0%
    • Employee Share: 0.18%

Contribution Structure (25 or fewer employees):

• Total Contribution: 0.46%
  • Medical Contribution: 0.28%
    • Employer Share:0%
    • Employee Share: 0.28%
  • Family Contribution: 0.18%
    • Employer Share: 0%
    • Employee Share: 0.18%

Please note that these contribution levels represent no change from the current model established for CY2024.

Maximum Weekly Benefit for 2025
In addition, the weekly maximum benefit amount will increase from the current maximum of $1,149.90 per week to a maximum benefit of $1,170.64 per week. This modest increase reflects a similar rise in the State Average Weekly Wage (SAWW), which has increased to $1,829.13 from $1,796.72 in the prior period. The SAWW is used annually to calculate the weekly benefit for qualified leaves under MA PFML law.

Topping Off Weekly Benefit Amendment Update
During the budget process for Fiscal Year 2024, Governor Maura Healey approved an amendment to the current paid leave law that would allow employees who qualify for benefits to “top off” their weekly benefit with accrued sick and/or vacation pay. This amendment also applies to accrued pay for any leave provided under a collective bargaining agreement. Employees on leave may request accrued pay in an amount so as not to exceed 100% of their pre-leave earnings when combining MA PFML benefit payments and accrued leave pay.

What is not clear in the regulations is if the employer is required to allow an employee to use this benefit. After the new policy became effective, the Department updated its guidance. This update now appears to indicate that employees can only make this election if their employer’s policies allow it. Unfortunately, the language is not entirely clear. What is clear is that employers should ensure that policies reflect the design they want to offer employees. If the employer chooses not to permit topping off with accrued time, it is advisable to consult with legal counsel for guidance.

Private Plan Impact for CY2025
Please note that for employers with private plan exemptions, if your plan is insured, your insurer will be releasing a new contribution rate for CY2025 in the coming weeks. This rate may differ from the State’s public plan option. Employers with private plans are allowed to require employees to contribute to the cost of coverage, provided that employee costs are no greater than they would be under the State’s public plan. Private plans will need to comply with the updated weekly benefit maximum, effective January 1, 2025.

For groups with exemptions for the current year, you will need to renew your exemption via your MassTaxConnect account to maintain a private plan in the new calendar year. You may begin this process during the quarter prior to the expiration of your current exemption. For example, if your exemption is expiring on December 31, 2024, the exemption renewal process began on October 1, 2024. For more information on the renewal process, please visit the Department site.

To see updates other states have made to their paid family leave programs for 2025, please see our articles, Minnesota Passes Paid Family and Medical Leave and Delays and Changes to Maryland Paid Leave Law. If you have any questions, please contact a member of the OneDigital team.