Menu
  1. Home
  2. Producers
  3. Employers
  4. Members
  5. About
  6. Blog
  7. Contact
  8. Paid Leave
12 October 2023

Regulatory Update: CT Paid Leave Rate Released for 2024

New 2024 maximum benefit also announced

Regulatory Update:  CT Paid Leave Rate Released for 2024

What is the CT Paid Leave Rate for 2024?

On October 12, 2023, the CT Paid Leave Authority announced that the 2024 contribution rate for CT Paid Leave – Connecticut’s version of a Paid Family & Medical Leave program will remain at 0.5%.  This rate is then calculated on the employee’s total wages up to the Social Security wage contribution cap, which has been adjusted to $168,600 for 2024.

What is the maximum employee contribution for CT Paid Leave in 2024?

The maximum employee contribution for CT Paid Leave is determined by multiplying two factors:

  • The federal Social Security Income Limit for 2024:  $168,600.
  • 2024 CT Paid Leave contribution rate: 0.5%.

This means that an employee’s maximum CT Paid Leave contributions in 2024 to the State Plan will be $843 for the year.

How do CT Paid Leave private plan rates work?

Private plan rates are not tied to the contribution rate for the State’s Paid Leave Trust Fund, so your 2024 rates may not be affected. Be sure to speak to your broker about any questions on the rate. Keep in mind that private plan coverage cannot cost employees more than what they would be required to contribute under the State Plan. This means that if your private plan rate is higher than the State rate, you, as the employer, are required to cover any cost in excess of the State rate. And, if your private plan rate is lower than the State’s rate, then the employee contributions would be capped at the private plan’s rate. Learn more about private plans here.

CT Paid Leave Benefits Due to Increase on January 1, 2024

Additionally, CT announced they will increase the minimum wage effective January 1, 2024, to $15.69 – an increase of 4.6%. This affects the maximum benefit as follows:

 

Current

Effective 01/01/24

Minimum Wage

$15.00

$15.69

Maximum weekly benefit
(set at 60x minimum wage)

$900

$941.40

How does the new 2024 minimum wage increase impact CT Paid Leave benefits?

CT Paid Leave is closely tied to the CT minimum wage as it uses the minimum wage as the basis for its wage threshold calculation and maximum benefit payments.  The formula for leaves starting on or after January 1, 2024, is as follows:

Base Weekly Earnings

Corresponding Benefit Calculation

 

Up to $627.60 (40 times the CT minimum wage)

95% of the base weekly earnings

 

To a max of $596.22

More than $627.60

95% of the base weekly earnings: $596.22

+

60% of base weekly earnings that exceed $627.60

Capped at $941.40 (60 times the CT minimum wage)*

Governor Lamont’s press release on CT’s planned annual increase of its minimum wage and corresponding maximum weekly benefit, linked here, highlights that it is now tied to the percentage change in the federal employment cost index.

SIGN-UP now to stay up-to-date on all the latest CT PFML news! Learn more about CT PFML, how to apply to a Private Plan, and an overview of CT PFML benefits here..

 

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. The information in this material is as of the blog post’s date stamp; it is based on our knowledge of the applicable statutes and regulations and may change as the CT policy & procedures guide evolves, or Connecticut Paid Leave Authority issues guidance regarding CT PFML policy & procedures guidelines. 

 

Print

Categories

Tags

«May 2024»
MonTueWedThuFriSatSun
293012345
6789101112
13141516171819
20212223242526
272829303112
3456789
Legal

Terms of Use
Jurisdictional Notice
All Terms & Notices
Website Accessibility

Contact

Contact Overview
Customer Support
Site map

About

About ShelterPoint
Company News