2025 New York State Paid Family Leave Rates

The New York State Paid Family Leave (PFL) is a program that allows eligible employees to take up to 12 weeks of paid leave for certain eligible reasons. This employee-funded benefit enables them to take time off for family reasons and receive a weekly wage without compromising their job security.

This benefit is funded by deducting a certain percentage from an employee's gross earnings per pay period. The PFL contribution rates vary from state to state and from year to year. This percentage is determined as a result of the state of New York re-evaluating and recalculating the PFL contribution rates based on what was expended from the previous year’s usage.

The 2025 NYS PFL rates have been announced, and it’s important that employers and HR professionals are aware of this new rate to ensure payroll has accurate PFL contribution rates.

Paid Family Leave 

So what exactly is Paid Family Leave, and what is it used for? Paid Family Leave is a benefit available to eligible employees that allows them to take up to 12 weeks of paid leave for matters related to family. This benefit helps support the personal lives of employees by allowing them to take paid time off to be there for their family without compromising their job. 

This benefit can be used for situations such as:

• Time for a mother or father to bond with a new child, either newly born, adopted, or fostered.
• Caring for a family member with a serious health condition or illness.
• Assisting a loved one when a family member is deployed abroad on active military service. 

This leave can be taken all at once or in increments of full, separate days. During this time the employee may not receive their typical full weekly pay, but a percentage of their pay.

2025 PFL Contribution Rate Overview

The New York Paid Family Leave 2025 rate is 0.388%. This is a slight increase from the 2024 NYS PFL rate of 0.373%. 

While the Paid Family Leave 2025 deduction rate is set to 0.388%, there will be an annual maximum contribution cap of $354.53. This number is calculated based on the New York Statewide Average Weekly Wage (NYSAWW). This means that even though employees are required to have a deduction of 0.388% of their gross paycheck earnings, their annual contribution amount cannot exceed more than $354.53.

Let’s take a closer look at how the 2025 NYS PFL rates will affect employees who earn below the Statewide Average Weekly Wage (SAWW). Employees who earn less than the NYSAWW amount of $1,757.19 will contribute less than the annual cap of $354.53. For example, if an employee earns $519 a week (around $27,000 a year), then the employee will only contribute about $2.01 per week ($519 x 0.388%). This would put their annual contribution around $104.52, which is significantly below the maximum annual contribution. 

2025 Statewide Average Weekly Wage (SAWW) and Maximum Benefit

How much money does an employee receive for a weekly benefit amount? The exact amount varies for each employee, as each employee receives 67% of their average weekly wage, with a cap of up to 67% of the NYSAWW amount. As mentioned earlier, the NYSAWW amount for 2025 is $1,757.19, meaning employees may receive a weekly amount of up to $1,177.32.

To continue our example, employees earning around $519 a week would receive 67% of their weekly income, putting them at $347.73 per week with a 12-week maximum total benefit of $4,172.76.

Impact on Employers

What do the new 2025 NYS PFL rates mean for employers? Employers and payroll professionals need to be aware of these updated rates to ensure an accurate and correct payroll. They will also need to communicate with their employees to inform them of the new PFL contribution rates being deducted from their earnings. 

Employers should have their payroll systems updated with the new 2025 NYS PFL rates by January 1, 2025. New York employers and payroll professionals should ensure that their payroll management systems are adjusted with the NYS PFL payroll rate of 0.388% at the start of the new year to ensure they are staying compliant. 

They will also need to track employee contributions to ensure that no employee exceeds the PFL maximum contribution annual amount of $354.53. Preparing in advance for this change will help ensure smooth, accurate, and compliant payroll management. Failure to act in compliance with state regulations can result in penalties for your business. 

Using the 2025 PFL Payroll Deduction Calculator

Configuring the exact deduction amounts per employee may seem complicated, but employers can use the 2025 PFL payroll deduction calculator as a tool to help easily calculate PFL contribution rates for each employee. 

Here’s a step-by-step guide on how to calculate an employee’s exact contribution amount.

1. Open the New York Paid Family Leave 2025 Payroll deduction calculator.
2. Input an employee’s gross wages for the pay period.
3. This will calculate a deduction amount of 0.388% of the gross earnings that pay period, giving you the contribution amount for the pay period.

This New York PFL 2025 Payroll Deduction Calculator is a fantastic tool for employers to use to calculate NYS PFL rates for 2025; however, keep in mind it only provides an estimate of the deduction amount since bonuses, commissions, and other forms of compensation may affect the final deduction amount.

Staying Informed About PFL Changes

It’s essential for employers to be up-to-date and informed of the 2025 updates to New York State's Paid Family Leave, which allows eligible employees to take up to 12 weeks of paid leave for family-related reasons. This employee-funded program will have a 2025 contribution rate of 0.388%, which is slightly higher than the previous couple of years. Employees’ contributions are capped at $354.53 annually, with benefits amounting to 67% of their average weekly wage, up to a maximum of $1,177.32 per week.

Employers must adjust their payroll systems to reflect these new updated rates by January 1, 2025. This will help ensure smooth payroll management, compliance with state regulations, and accurate employee contributions. It’s essential that employers make the necessary adjustments reflecting this change in order to prevent any penalties due to non-compliance. 

Download the 2025 PFL Payroll Deduction Calculator to make payroll adjustments easier and ensure your business is PFL compliant. To stay informed and compliant with new payroll regulations, rates, and laws, subscribe to Complete Payroll's newsletter and never miss a payroll update!