Massachusetts Announces 2023 Paid Family and Medical Leave Contribution Rates and Benefit Amounts

The Massachusetts Department of Family and Medical Leave recently announced changes to the employer contribution rates and benefit amounts under the Paid Family Medical Leave Act (PFMLA). Effective January 1, 2023, the contribution rate for employers with 25 or more covered individuals will be reduced to 0.63% of covered employees’ eligible wages from the current rate of 0.68%. Employers with fewer than 25 covered individuals will have a contribution rate of 0.318% of eligible wages, a reduction from the current rate of 0.344%.

For employers with 25 or more covered individuals, the 0.63% contribution rate is apportioned between family leave and medical leave, with 0.52% to medical leave and 0.11% to family leave. Employers may withhold from a covered employee’s wages the entire 0.11% contribution rate for family leave contribution and up to 0.208% for an employee’s medical leave contribution. Employers are responsible for directly paying the remaining 0.312% of medical leave contribution.

Employers with fewer than 25 covered individuals may also withhold 0.11% of eligible wages for the family leave contribution and 0.208% of eligible wages for the medical leave contribution.

Although contribution rates will decrease from 2022 to 2023, the maximum weekly wage a covered employee can receive while on paid family medical leave will increase to $1,129.82 per week in 2023 from $1,084.31 per week in 2022.

If you have any questions about the content of this update, please contact us. We are pleased to assist employers with all matters related to paid family medical leave.

This update is provided for informational purposes only and should not be considered legal advice.