Massachusetts is introducing a major change to the way employers and employees finance the contributions for the state’s Paid Family and Medical Leave (PFML) program. The new percentages are as follows:

- Employers will pay 60% of the family leave contribution (down from 100%);

- Employees will pay the remaining 40% of the family leave contribution (up from 0%);

- Employers will pay 100% of the medical leave contribution (up from 60%).

These new percentages only apply to employers with 25 or more employees. Employers should work with their payroll departments/providers to ensure that these new calculations are put in effect by 2027. Employers should also update their policy documents to reflect the new percentages (and provide copies to employees as soon as possible).

These new calculations will take effect beginning January 1, 2027.