New York Paid Family Leave Benefits and Employee Contribution Rates and Caps Set to Increase in 2025

With 2024 winding down, New York employers should be aware of the updates to the New York State Paid Family Leave (PFL) program that take effect in 2025.

As a reminder, PFL allows eligible employees to take up to 12 weeks of job-protected, partially paid time off within a 52-week period for permitted reasons, such as to bond with a newborn, care for a family member with a serious health condition or assist when a family member is deployed abroad on active military service.

As we noted in a bulletin post last year, New York has modified its program several times since establishing PFL in 2018. While PFL’s changes for 2025, as explained below, are ministerial, it should be noted that New York recently expanded other mandatory benefits, including the provision of paid lactation breaks and the addition of paid leave for prenatal care under the New York paid sick leave program. 

The Maximum Weekly Benefit Cap Will Increase to $1,177.32

Employees who use PFL are entitled to benefits equal to the lesser of 67% of their average weekly wages or 67% of the current New York State Average Weekly Wage (SAWW). Effective January 1, 2025, the SAWW will increase to $1,759.19. Accordingly, the weekly benefits rate for PFL taken in 2025 will be capped at $1,177.32, which is an increase of $26.16 over the current benefits cap.

The Employee Contribution Rate and Annual Contribution Cap Will Increase in 2025

Corresponding with the increased payout will be an increase in the rate for contributions collected for the PFL program through payroll deductions, which are calculated based on each employee’s gross wages per pay period. In 2025, the employee contribution rate will increase from 0.373% to 0.388% of gross wages per pay period. Additionally, the contribution cap for individual employees will increase from $333.25 to $354.53 per year. Employees earning less than the SAWW will continue to contribute less than the annual contribution cap.

Employers should prepare for the 2025 updates by reviewing their Paid Family Leave policies and adjusting payroll mechanisms to reflect the new caps and employee contribution rates as of January 1st.

Isabel Wolf, a Law Clerk—Admission Pending in Epstein Becker Green’s New York office, contributed to the preparation of this publication.