New York Paid Family Leave 2027 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, 2027, will be set at 0.452% of weekly wages, a 4.55% increase from last year.

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. The PFL benefit is 67% of an employee’s average weekly wage (up to the New York State Average Weekly Wage) payable for 12 weeks. A comparison of the 2027 PFL contribution and benefit information with 2026 is as follows:

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 2026 and the leave extends into 2027, the benefit is based on the rate in effect on the first day of leave (i.e., in 2026) and is not recalculated at the 2027 rate.
• If an employee begins intermittent leave in 2026 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 2027, and the benefit is calculated at the 2027 rate.
• Beginning January 1, 2027, there is a new eligibility standard for construction employees who will be eligible to take PFL from the covered employer immediately prior to their period of PFL if they were in employment and worked the employer's normal work week for at least 26 of the last 39 weeks with any covered employer under a collective bargaining agreement.

Employer Action

Employers should prepare for the 2027 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.