A Fresh Perspective On The Cost Of PFL
November 16, 2017
With Paid Family Leave (PFL) taking effect on January 1, 2018, you’ll be able to take time off to bond with a new baby or child, care for a family member with a serious medical condition, or be there for a family member in the military — all while receiving a portion of your current salary, job protection, and your regular medical benefits.
In 2018, PFL will give you the flexibility to take up to 8 weeks of leave in a consecutive 52-week period while receiving up to 50% of your current weekly wage, capped at 50% of the New York State Average Weekly Wage (NYSAWW).* This will increase until 2021 when it will go into full effect at 12 weeks of leave in a consecutive 52-week period and up to 67% of your weekly wage, capped 67% of the NYSAWW.*
Covered Employers (typically all private-sector employers with at least 1 employee in New York.) must provide Paid Family Leave to their eligible employees and may take a deduction from your paycheck for this new benefit. To learn more about Covered Employers and eligible employees, check out this blog post.
But what does that mean for you? Every year, the State of New York will set the rate for PFL, and for 2018 it’s set at 0.126% of your salary, capped at the annualized NYSAWW, which comes out to a maximum contribution of $85.56 per year. This means you won’t contribute more than $85.56 per year. Averaged over the year, you’re paying $1.65 a week. So, what does $1.65 really look like?
*NY Department of Labor releases the updated NYSAWW by March 31 of each year.
This blog post is for informational purposes only and is not intended to provide legal counsel. Please consult with an appropriate professional for legal and compliance advice. Any PFL information is as of the blog post’s date stamp; it is based on the applicable statutes and regulation, and may change as regulations evolve or NY State issues guidance regarding Paid Family Leave regulations. Have more questions? Email us at email@example.com