Maryland Family & Medical Leave Insurance (MD FAMLI) Overview

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Though 2026 may seem far away, some important steps for employers will start well in advance.

Let’s level-set first with a quick overview of the details of this program. As established by the Time to Care Act (TTCA), MD Family & Medical Leave Insurance (FAMLI) is Maryland’s version of a state-mandated Paid Family & Medical Leave (PFML) program and becomes a required benefit effective July 1, 2026 – this applies to all employers with at least 1 eligible employee working in Maryland, regardless of industry or payroll size.

What Will MD FAMLI Cover?

MD FAMLI provides employees with partial income replacement for up to 12 weeks of job-protected leave for these qualifying events:

The exception is, if an employee needs to take bonding and medical leave in the same 12-month period, the durations get a combined maximum of 24 weeks within that same benefit year.  

What Will the MD FAMLI Benefit Amount Be?

The maximum benefit will be set at $1,000 per week for the first year of MD FAMLI. The benefit calculation is based on an employee's average weekly wage (AWW) as follows: 

• 90% of the portion of the employee’s AWW that is equal to or less than 65% of the SAWW

Plus

• 50% of the portion of the employee’s AWW that is greater than 65% of SAWW

How does the benefit calculation work?

Currently, the MD SAWW is $1,493 translating into a $970.45 threshold of 65% if the benefit was in effect already. So, for example, if Joe had an AWW of $900 per week, which is less than the threshold, his weekly benefit would be $810 – but this amount will most likely go up a bit since we expect a SAWW update* before the benefit goes into effect July 2026.

Now, let’s say Jenn has an AWW of $1,700 per week — her weekly benefit would be calculated as follows:

90% of $970.45 (as in 65% of the current SAWW of $1,493), i.e. $873.41, PLUS 50% of $826.59, for a total of $1,286.71 — however, there is a cap of $1,000, which means she would max out on the initial benefit amount. Jenn’s actual numbers would also stack up a little differently in 2026 given future SAWW updates, but you get the idea.

It’s also worth noting that Maryland requires a weekly minimum benefit of $50.

* Please note: Maryland’s SAWW gets adjusted annually on July 1st and becomes effective January 1^st of the following calendar year.

How Much Will the MD FAMLI State Plan Cost?

The rate is set by Maryland’s Department of Labor (DOL) and structured as a percent of an employee’s covered wages up to the Social Security cap.

For employers with 15+ employees, the rate is set at 0.90% (consisting of 0.45% employer and 0.45% employee share) of covered wages up to the Social Security cap. Employers cannot withhold more than half of the total contribution rate from their employees’ pay, i.e. the 0.45% maximum employee contribution.

For small employers with less than 15 employees, the employer contribution is waived, i.e. only the 0.45% employee share applies. Employers still have the option to pay for all or part of their employees’ required contributions.

How are wages defined?

While legislation is still pending, the General Assembly is considering aligning the definition of wages to be consistent with the definition used for unemployment insurance purposes. Sign up here for updates to stay in the know when this information is made available.

Please note: The contribution rate gets announced by the MD DOL each February for the following program year (which runs from July 1 through June 30) and cannot exceed 1.2% of wages up to the Social Security cap.

Is There a Private Plan Insurance Option?

Yes, there will be! Maryland employers have the option to provide benefits through the MD FAMLI State Plan or a Private Plan also referred to as Equivalent-Private Insurance Plan (EPIP) in Maryland specifically. A fully insured, approved Private Plan is an alternative to the State Plan, which at least meets or exceeds the rights, protections, and benefits of the State Plan. It can be either self-insured by an employer or fully insured through an approved insurance carrier, such as ShelterPoint, in which case coverage is provided in the form of a Paid Family & Medical Leave (PFML) policy. While Private Plan carriers set their own rates, employers can’t deduct more from their employees than what it would have cost them through the State Plan.

The exemption application window for Private Plans with the State will tentatively be open from May 2025 to August 2025 – however, quoting with ShelterPoint is already available.

What are the advantages of a Private Plan?

Once an employer’s Private Plan is approved, they are exempt from remitting contributions to the State’s Trust Fund for future quarters – that includes early contributions to pre-fund the State Plan that employers would otherwise need to start withholding from their employees in July 2025 and begin remitting to the State in October 2025 on a quarterly basis. With ShelterPoint as the Private Plan carrier, premiums are not due before the benefit goes into effect in 2026.

Approved private carriers, such as ShelterPoint, have built the experience, scalability, and agility to manage Paid Family & Medical Leave coverage and have the resources to continuously expand and enhance capabilities to provide smooth service from onboarding to claims.

When is the Best Time to Apply for a Private Plan?

As mentioned above, the application window will tentatively be open from May through August 2025, during which employers file their “Declaration of Intent” to go with a Private Plan. However, keep in mind that payroll deductions need to start in July 2025 to pre-fund the State Plan, unless a Private Plan application gets approved before then. Maryland is proposing to ask for an application fee that ranges from $100 to $1,000 depending on the group size for a fully insured Private Plan. To optimize timing and readiness for the application window to open, it’s a good idea to set things into motion early, even while some details around the application process itself are still falling into place — sign up for updates here.

If you are an employer and are interested in a Private Plan and would like to obtain a quote for private coverage, please contact your broker.

Brokers, please contact your ShelterPoint Sales Rep for quoting.

What Are Key Dates Leading Up to MD FAMLI Going Into Effect?

**pending approval of regulations

¹The ShelterPoint family of companies operates under the “ShelterPoint” name strictly as a marketing name, and no legal significance is expressed or implied. The ShelterPoint family of companies consists of ShelterPoint Life Insurance Company a NY-domiciled carrier (principal office in Garden City, NY) and its wholly-owned subsidiary ShelterPoint Insurance Company, a FL-domiciled carrier, with licensing depending on the state.

This material is for informational purposes only and is not intended to provide legal counsel. Please consult with an appropriate professional for legal and compliance advice. Any program information is based on our knowledge and understanding of Maryland’s applicable laws and regulations as of the publication date and may change as regulations evolve or Maryland Department of Labor issues updated guidance. Further, this material is for illustrative purposes only, providing a general overview of the services described. It is not a contract nor intended as an offer of coverage.

Policies are subject to Underwriting approval. Policies are reviewed annually and may be cancelled for nonpayment. All coverage extends to limits reflected in the policy. Please refer to the policy for coverage details pursuant to its governing law, including a complete listing of covered services, provisions, conditions, exclusions, limitations, and terms under which the policy may be continued or cancelled. In the event of conflicting information with the policy and its governing Law, the policy and governing Law will take precedence over what is shown in this material. Claim payment is not guaranteed; benefit amount depends on wages.

Maryland’s Time to Care Act (TTCA) (as reflected in MD Code Lab. & Empl. §§ 8.3-101 et seq.) and any Rules and Regulations established by the Maryland Department of Labor FAMLI Division govern this Private Plan and its interpretation and administration. Available in MD only.

Underwritten by: ShelterPoint Life Insurance Company (principal office in Garden City, NY) in: MD (form# pending); rates subject to approval by the Maryland Insurance Administration.