Paid Leave will Announce the 2025 Premium Rate in Late October
The Paid Leave premium rate is changing on Jan. 1, 2025. Premiums, collected from employees and employers through quarterly reporting, fund the Paid Leave program. By law, we recalculate the Paid Leave premium rate annually on Sept. 30. The premium rate is adjusted based on contributions from premiums and benefits paid during the previous year.
When we announce the new premium rate, we will publish it on the Updates page of the Paid Leave website. We will also send an email announcement to subscribers of this newsletter.
Paid Leave Calculated Business Sizes for 2025
The Paid Family & Medical Leave program calculated business sizes on Sept. 30 for the next year. To do this, we averaged the employee headcount you reported over the previous four quarters. The average includes reports you filed as “no payroll.” If your business size changed, we will mail you a letter in early October to let you know.
If we calculated that you have 50 or more employees:
- You will be responsible for paying the full Paid Leave premium rate on wages paid Jan. 1 to Dec. 31, 2025. The full premium rate includes the employer’s and employee’s share. The first report for these premiums will be due in April 2025.
If we calculated that you have fewer than 50 employees:
- Beginning Jan. 1, 2025, you will not be responsible for paying the employer share of premiums. You still need to remit the employee portion. You may choose to contribute the full premium rate to the program by opting in annually. The enrollment period for calendar year 2025 is open until March 1.
To find more information on the Paid Leave website about:
- Opting in and about small-business grants, go to the Small Businesses page.
- Premium rate information, go to the Premiums Estimator page.