The Massachusetts Department of Family and Medical Leave (DFML) announced significant changes regarding the contribution rates for the state’s paid family and medical leave program (PFML) beginning in 2027. According to the DFML, the change in contribution structure will mitigate the impact of recent IRS guidance on the tax treatment of Massachusetts PFML benefits.
Specifically, Chapter 101 of the Acts of 2026 will shift the contribution from the medical leave portion of the program to the family leave portion. Under the updated law, employers with 25 or more covered individuals will no longer be required to fund medical leave contributions and instead will pay 60% of the family leave contribution, while employees may be charged up to 100% of the medical leave contribution. However, the revised law will not change employee eligibility, benefit amounts, or leave entitlements for PFML. The Massachusetts DFML is expected to announce the 2027 PFML contribution rates by October 1, 2026.
Employer Takeaway
Massachusetts employers will not be required to make any immediate changes to PFML contributions before January 1, 2027. However, employers should review payroll systems and employee communications in preparation for the 2027 PFML rates.
For more information, read the MA Chapter 101 of the Acts of 2026.