As a reminder, benefits payable under California State Disability Insurance (SDI) and Paid Family Leave (PFL) are scheduled to increase effective Jan. 1, 2018. The changes are a result of AB 908, which Gov. Brown signed into law back in April 2016.
Under current law, eligible workers receive up to 55 percent of wages under SDI and PFL. However, under the new law, benefits vary based on whether the worker’s normal earnings are above or below the state’s average weekly wage. If an employee earns less than 33.3 percent of the state's average weekly wage ($1,120.67), the employee’s benefit will be 70 percent of normal earnings. Alternatively, if an employee earns at least 33.3 percent of the state's average weekly wage, that employee’s benefit will be 60 percent of normal earnings or 23.3 percent of the state average weekly wage, whichever is greater.
Also effective Jan. 1, 2018, the seven-day waiting period under PFL is eliminated.
Additionally, the California Employment Development Department (EDD) recently announced that the 2018 employee contribution rate for SDI will increase to 1.0 percent from 0.9 percent. The taxable wage base from which the contributions will be taken will increase from $110,902 for calendar year 2017 to $114,967 in 2018. The maximum weekly benefit increases from $1,173 to $1,216.
EDD Announcement »
AB 908 »