On August 29, 2025, the New York Department of Financial Services (NY DFS) announced its decision concerning the applicable premium rate and maximum employee contribution for New York Paid Family Leave (NY PFL) coverage beginning January 1, 2026.
Effective January 1, 2026, the PFL rate will be set at 0.432% of an employee's salary per payment period up to and not exceeding a maximum annual employee contribution of $411.91. If an employee's contribution reaches the maximum annual employee contribution before the end of the calendar year, the employee shall not be liable for any additional contributions that year.
NY PFL applies to all private employers, including out-of-state employers, with at least one employee working in New York. The state’s PFL program provides eligible employees with a portion of their wages while taking time off to bond with a child, care for a family member with a serious health condition or handle personal matters when a family member is deployed abroad on active military service. The PFL premium rate, like the benefit amount, is set as a percentage of an employee's covered wages; therefore, so the premium paid by an employee depends on how much the employee earns. NY PFL premiums can be funded through post-tax employee payroll deductions or can be paid directly by the employer at the employer’s discretion.
New York employers should be aware of this and must collect employee contributions that are consistent with this decision.
Read the update on rate changes: NY DFS: 2026 PFL Rates.