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Minnesota's Department of Employment and Economic Development (DEED) has announced the State Average Weekly Wage (SAWW) for the 2026-2027 Minnesota Paid Leave benefit year. Effective October 25, 2026, the SAWW will increase to $1,475.09, with a statewide average annual wage of $76,704. The SAWW is a key figure used to calculate Minnesota Paid Leave benefits and serves as the program's maximum weekly benefit cap.
Summary of Key Updates
- The 2026-2027 Minnesota Paid Leave SAWW is $1,475.09.
- The new SAWW becomes effective October 25, 2026, and applies through the benefit year beginning on that last Sunday in October.
- Minnesota Paid Leave benefits are calculated using the SAWW, and the program's maximum weekly benefit cannot exceed the SAWW.
- DEED confirmed that the Paid Leave SAWW is different from the workers' compensation SAWW.
- According to DEED, use of the higher SAWW for Paid Leave aligns with statutory requirements and results in more generous employee benefits.
- DEED acknowledged that this year's announcement was issued later than expected and indicated future annual updates should be released earlier to support employer and vendor programming changes.
Employer Action Steps
Employers with Minnesota employees should consider:
- Updating payroll, leave administration, benefits, and private plan systems to reflect the $1,475.09 SAWW beginning October 25, 2026.
- Confirming that Minnesota Paid Leave calculations use the correct SAWW and are not inadvertently tied to workers' compensation wage limits.
- Reviewing private paid leave plans to ensure benefit calculations remain at least as generous as the state program.
- Coordinating with third-party leave administrators and payroll providers regarding any required system updates.
How Alight Supports Employers
Alight Leave Solutions specializes in state and federal leave of absence programs. Alight Leave Solutions monitors state leave developments and state 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.
