Massachusetts has recently amended its Paid Family and Medical Leave (PFML) to provide additional benefits to employees. Along with its annual modifications to contribution and benefit rates, Massachusetts PFML will create an avenue for employees to convert company PTO into greater PFML benefits.

1. Annual Contribution Rate and Benefit Increases

The first change is an expected increase in contribution rates and weekly benefits for the 2024 calendar year. The contribution rate will increase from .68% to .88% of eligible wages for employers with 25 or more employees. This is split between employee contributions and employer contributions in the following manner:

- Family Leave Contribution (.18%): .18% Employee, 0% Employer

- Medical Leave Contribution (.70%): .28% Employee, .42% Employer

For employers with less than 25 employees, the contribution rate will increase from .318% of eligible wages to .46%. This is a benefit solely funded by employee contributions, using the following percentages of eligible wages:

- Family Leave Contribution- .18%

- Medical Leave Contribution- .28%

 Finally, the maximum weekly benefit will increase from $1,129.82 to $1,149.90. These increased rates will begin January 1, 2024.

2. New Employee Options for Receiving Maximum PFML Benefits

The more significant change to PFML is the ability of employees to supplement their PFML wage replacement benefits with other (unrelated) accrued PTO. The PFML amendment allows employees to use accrued leave from any source towards their compensation during a PFML leave of absence. Employees may receive up to 100% of their pre-leave salary using this process. Employers will be expected to provide all employees with notice of their right to use PTO to supplement PFML leave. This change is set to begin on November 1, 2023.

Guidance is expected to be provided in the near future explaining further how PFML and PTO will work together.