Minnesota Maintains PFML Premium Rates for 2027

In 2023, Minnesota enacted a paid family and medical leave (“PFML”) program that provides paid leave for most employees in the state starting in 2026. PFML qualifying events include caring for serious health conditions—either for the employee or a family member, bonding with a new child, and responding to incidents of domestic violence, sexual assault, or stalking.

2027 Premium Amounts

The Minnesota Department of Employment and Economic Development (“DEED”) has confirmed the PFML premium rate for large employers will remain at 0.88% of the taxable wages of covered employees in 2027. Similarly, the premium rate for small employers will stay unchanged at 0.66%.

Employers may choose to pay the entire premium or share the cost with employees; however, employers may not charge employees more than 50% of the required premium. Therefore, a large employer may not charge employees more than 0.44% of the premium. For small employers, the limit on employee contributions remains at 0.22% of the premium.

Employer Action

Employers should continue to budget appropriately for PFML and update any leave-related documents as necessary to ensure that employees are aware of their rights.