Massachusetts’ Paid Family Leave Contribution Rate Decreases in 2023

Massachusetts’ Paid Family Leave Contribution Rate Decreases in 2023

Effective January 1, 2023, the Massachusetts Paid Family and Medical Leave contributions rate will decrease to 0.63% (0.68% in 2022) of eligible wages, up to the Social Security wage base. For a summary of the PFL law, see prior Benefit Beat articles here and here.

As a reminder, the program is funded by premiums paid by both employers and employees as described below:

  • Employers with 25 or more Massachusetts employees must remit the entire 0.63% contribution to the trust fund. Such employers may deduct 100% of the family leave contribution, and 40% of the medical leave contribution from employees. The employer must pay the remaining 60% of the medical leave contribution.
  • Employers with 24 or fewer Massachusetts employees are not obligated to pay the 60% employer share of the medical leave contribution. Such employers need only remit the remaining 40% employee share of the medical leave contribution, and 100% of the employee’s family leave contribution, all of which may be deducted from the wages of employees.

Stay tuned as the state average weekly wage and maximum weekly benefit amount for 2023 should be announced soon.


The information contained in this Benefit Beat is not intended to be legal, accounting, or other professional advice, nor are these comments directed to specific situations. This information is provided as general guidance and may be affected by changes in law or regulation. This information is not intended to replace or substitute for accounting or other professional advice. You must consult your own attorney or tax advisor for assistance in specific situations. This information is provided as-is, with no warranties of any kind. CBIZ shall not be liable for any damages whatsoever in connection with its use and assumes no obligation to inform the reader of any changes in laws or other factors that could affect the information contained herein.

Massachusetts’ Paid Family Leave Contribution Rate Decreases in 2023https://www.cbiz.com/Portals/0/Images/Paid Family Leave header-1.jpg?ver=3QJns01-6v-mOtvaHDj0PA%3d%3dEffective January 1, 2023, the Massachusetts Paid Family and Medical Leave contributions rate will decrease to 0.63% (0.68% in 2022) of eligible wages, up to the Social Security wage base.2022-10-04T19:00:00-05:00Effective January 1, 2023, theMassachusetts Paid Family and Medical Leave contributions rate will decrease to0.63% (0.68% in 2022) of eligible wages, up to the Social Security wage base.Regulatory, Compliance, & LegislativeEmployee Benefits ComplianceNo