Paid Family Leave: 2019 Rate Release
The New York State Department of Financial Services has released the 2019 rate for Paid Family Leave. The original law stated that DFS would release the rate by September 1st each year for the upcoming year. The rate for 2019 will be 0.153% of an employee’s gross wages, not to exceed $107.97 annually. This is a 21.4% increase over the inaugural 2018 rates. The full release form DFS can be found here: https://www.dfs.ny.gov/insurance/pfl/dec_prem_rate_2019.pdf
The benefits are increasing in 2019 from 8 weeks to 10 weeks of leave and from 50% average weekly wage to 55%. Benefits and the percentage of earnings increases each year until 2021, per the original law.
|NY Paid Family Leave (PFL) Benefit Provisions|
|Effective Date||January 1, 2019
(applicable to new leaves beginning 1/1/19 or later)
|January 1, 2018
(applicable to all leaves initiated in 2018)
|Maximum Length of Paid Leave||10 weeks||8 weeks|
|Payable Benefit % of an Employee’s Average Weekly Wage||55%||50%|
|Maximum Weekly Benefit
(Cap % of NY State Average Weekly Wage [NYSAWW])
(55% of NYSAWW of $1,357.11)
(50% of NYSAWW of $1,305.92)
Anyone considering taking Paid Family Leave near the end of the year should consider this; the maximum duration and amount of benefit depends on when the claim starts. Any claim started in 2018 will be based on the 2018 duration and percentage. So, if you are taking time off to bond with a newborn, waiting until 2019 will allow for two more weeks and 5% more pay.
Questions about Paid Family Leave can be addressed by your Consultant at KBM Management.