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Massachusetts Paid Family & Medical Leave Rates Updated for 2023

The Department of Family and Medical Leave (DFML) has announced changes to the required contribution rate that funds the program, as well as a change in the maximum weekly benefit. For your reference, in CY2022, the contribution rate for the public plan is 0.68% of eligible wages.  This is a combined rate between the medical rate of 0.56%, and the family rate of 0.12%. The maximum benefit amount that is payable for any form of leave is $1,084.48 per week.  Effective January 1, 2023, the following changes will be implemented: 

 

NEW WEEKLY MAXIMUM BENEFIT AMOUNT

The MA Paid Family & Medical Leave weekly maximum benefit amount will increase from the current rate of $850 per week to a rate of $1,084.31 in 2022. This increase of more than 27% is determined by the PFML legislation that created the mandate.

FOR CALENDAR YEAR 2023

Employers with 25 or More Covered Individuals:
The new rate for the public plan will be reduced to a combined rate of 0.63% of applicable wages. 

  • Medical rate of 0.52%  
  • Family rate of 0.11% 

Employers with Less than 25 Covered Individuals:
The new rate for the public plan will be reduced to a combined rate of 0.318% of applicable wages.  

  • Medical rate of 0.208%  
  • Family rate of 0.11% 

The weekly maximum benefit amount will increase to a rate of $1,129.82 per week.  An increase of approximately 4%. (Benefit amount is based on the Massachusetts State Average Weekly Wage (SAWW). The state announced this week that the SAWW has increased from $1,694.50 per week to $1,735.64 per week).

Employers with Private Plan Exemptions:
If your plan is insured, your insurer will be releasing a new contribution rate for CY2023 in the next few weeks.  This rate may be different than the State’s public plan option. Employers with private plans are allowed to require employees to contribute to the cost of coverage, provided that costs for employees are no greater than their costs would be if they were participating in the State’s public plan. In addition, for groups that have exemptions for the current year, you will need to renew your exemption in order to continue to maintain a private plan in the new calendar year. 

Employer Contribution Models:
There are no changes to the MA PFML contribution models that employers are required to follow.
A portion of the contributions can be paid by the employee up to the following levels: 

  • Medical Leave:
    • Maximum Contribution Rate Paid by Employee: Up to 40% of the medical leave contribution can be paid by the employee.
    • Minimum Contribution Rate from Employer: Employers are required to contribute no less than 60% of the contribution rate. However, employers have the option to cover more than 60%.
  • Family Leave:
    • Up to 100% of the family leave contribution can be paid by the employee. Employers may pay a portion, or all, at their option.

Changes made to the PFML maximum weekly benefit amount were determined by the PFML legislation mandate. However, the paid leave law requires that after the first year of being on a workforce, the maximum weekly benefit amount be derived from the SAWW that is published on October 1st of each year.

If you're seeking to explore MA PFML Private Plan options, or have any questions, contact your local OneDigital advisor or the author, Darren Ambler, directly.

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