Washington DC’s City Council unanimously passed the 2025 Fiscal Year budget which includes a 0.49% increase to the employer payroll tax for Paid Family Leave. As a reminder, the District’s paid family leave law is 100% employer paid and provides up to 12-weeks of leave in a year for parental leave, family leave, or medical leave and up to 2 weeks for prenatal leave.
Currently, covered employers contribute quarterly an amount equal to 0.26% of the wages of each of its covered employees to the Universal Paid Leave Implementation Fund. This amount will increase to 0.75%, meaning employers will pay an additional $49 on every $10,000 in wages paid to employees.
The Mayor has indicated she does not support this increase, however, the council passed the budget unanimously, indicating that a mayoral veto likely would be overridden. Employers will want to keep on eye this.
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