Canada (EN)
Massachusetts employers should prepare for upcoming changes to Paid Family and Medical Leave (PFML) contributions and benefits effective January 1, 2027. While the overall contribution rate for larger employers remains unchanged, the allocation between family leave and medical leave contributions is shifting, and the maximum weekly benefit amount will increase.
Summary of key updates
Contribution rate changes for employers with 25 or more covered individuals
The total PFML contribution rate remains 0.88% of eligible wages, but the allocation of contributions will change beginning January 1, 2027.
- Family Leave contribution: 0.70% total contribution
- Employee share: up to 0.28% (40%)
- Employer share: at least 0.42% (60%)
- Medical Leave contribution: 0.18% total contribution
- Employee share: up to 0.18% (100%)
- Employer share: no required contribution
Contribution rate for employers with fewer than 25 covered individuals
No significant changes apply to employer funding obligations:
- The effective PFML contribution rate remains 0.46%
- Employers are not required to contribute
- Employee payroll deductions may continue to fund the required contributions
Maximum weekly benefit increase
Effective January 1, 2027, the maximum weekly PFML benefit will increase to $1,284.61, up from $1,230.39 in 2026.
Employer action steps
Massachusetts employers may want to:
- Review 2027 payroll deduction settings to reflect the revised Family Leave and Medical Leave contribution allocation
- Coordinate with payroll providers and internal payroll teams to ensure proper implementation of withholding changes
- Update PFML notices, employee communications and enrollment materials as needed
- Review leave policies and administrative procedures for consistency with the 2027 PFML framework
- Prepare to address employee questions regarding the increased maximum weekly benefit amount
How Alight supports employers
Alight Leave Solutions specializes in state and federal leave of absence programs. Alight Leave Solutions monitors leave law developments and agency guidance and will incorporate changes where they affect the administration of leave of absence.
Disclaimer
This material is provided for general information purposes only and does not constitute legal advice. The information contained in this article reflects the legislative, statutory and/or regulatory landscape as of the date of publication. Given the evolving nature of laws, regulations and interpretive and official guidance, portions of this content may no longer be current. Readers should not rely on this content as a substitute for current compliance guidance and should consult the most up-to-date statutes, regulations and guidance, and/or seek legal advice before acting on any information referenced herein.
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