New York Paid Family Leave 2025 Contributions and Benefits

The New York State Department of Financial Services has announced the contribution rate under the New York Paid Family Leave (PFL) law effective January 1, 2025, will be set at 0.388% of employee wages.

Employee contributions for PFL are calculated as a percentage of an employee’s gross wages per pay period up to the maximum contribution based on the annualized New York State Average Weekly Wage (NYAWW). For 2025:

• NYAWW in effect will be $1,757.19. The annualized NYAWW is $91,373.88.
• The maximum annual employee contribution will be $354.53 ($333.25 in 2024).

The PFL benefit is 67% of an employee’s Average Weekly Wage (up to the NYAWW) payable for 12 weeks. For 2025:

• The maximum weekly PFL benefit will be $1,177.32 ($1,151.16 in 2024).

The following should be noted:

• The maximum amount of PFL and disability leave under the New York Disability Law (DBL) that may be taken in a 52-consecutive week period is limited to 26 weeks.
• If an employee begins continuous leave in 2024 and the leave extends into the 2025, the benefit is based on the rate in effect on the first day of leave (i.e., in 2024) and is not recalculated at the 2025 rate.
• If an employee begins intermittent leave in 2024 and the leave extends into the following year and there is at least a three-month lapse in days taken under New York PFL, the leave is considered a new claim under the law in 2025 and the benefit is calculated at the 2025 rate.

Employer Action:

Employers should prepare for the 2025 New York PFL contribution and benefit changes that begin in January. PFL coverage will typically be added as a rider on an employer’s existing disability insurance policy, although benefits can be provided through a self-funded plan approved by the New York Workers’ Compensation Board.

This document is designed to highlight various employee benefit matters of general interest to our readers. It is not intended to interpret laws or regulations, or to address specific client situations. You should not act or rely on any information contained herein without seeking the advice of an attorney or tax professional.