Maine's Paid Family and Medical Leave (PFML): Key Dates, Costs, and Benefit Information

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Although 2026 may seem far away, employers already need to take important steps to comply with their Maine Paid Family and Medical Leave (PFML) obligations. As the Maine Department of Labor just adopted final rules in December, let’s level-set first with a quick overview of the details of this program. As established by Maine’s Paid Family and Medical Leave Law, ME PFML becomes a required benefit for Maine employers to provide effective May 1, 2026. Other than federal government entities or tribal governments, ME PFML applies to all private and public employers with at least 1 employee working in Maine, regardless of industry or payroll size. Tribal governments and self-employed individuals have the right to opt in to coverage if they wish.

What Will ME PFML Cover?

Maine’s Paid Family & Medical Leave (PFML) law provides eligible employees with partial income replacement for job-protected leave during critical life events. Starting May 1, 2026, a covered employee is eligible for up to 12 weeks of ME PFML benefits per year for certain qualifying reasons:

• Family leave: To care for a new child (birth, adoption, fostering) or for a family member with a serious health condition.
• Medical leave: To care for one’s own medical needs related to a serious health condition.
• Safe leave: To stay safe or to help a family member stay safe after abuse or violence.
• Qualifying exigency: For emergencies related to a family member’s military deployment.

What Will the ME PFML Benefit Amount Be?

The maximum benefit will be set at 100% of the Maine state average weekly wage (SAWW)*, which changes annually. For reference, the current ME SAWW is $1,144.67, which compares to $59,523.84 annualized – but this amount may increase slightly since we expect a SAWW update before the benefit goes into effect May 2026.

The ME PFML benefit calculation is based on an employee’s average weekly wage (AWW) and is as follows:

• Step 1: For the employee’s portion of wages of 50% or less of SAWW (rounded up to the nearest dollar)

Calculate 90% of the employee’s AWW (rounded up to the nearest dollar)

• Step 2: For the employee’s portion of wages that exceeds 50% of SAWW (if any)

Calculate 66% of the employee’s AWW for earnings that exceed 50% of SAWW (rounded up to the nearest dollar)

• Step 3: The Weekly Benefit Amount is the sum of the amounts calculated under Step 1 and Step 2, and capped at the SAWW, which is the maximum weekly benefit amount

How does the benefit calculation work?

So, for example, if Joe earned $57,000 in annual wages (or an average weekly wage of $1,096.15), his weekly benefit amount would be $860.73 based on the current SAWW and calculated as follows:

• Step 1:
  • Determine 50% of SAWW ($1,144.67), rounded up to the nearest dollar = $573
  • Joe gets 90% of that amount, rounded up to the nearest dollar = $516
• Step 2:
  • Determine the amount of Joe’s wages above $573: $1,096.15 - $573 = $523.15
  • Joe gets 66% of that portion, rounded up to the nearest dollar = $346
• Step 3:
  • Add the amounts from Step 1 and Step 2: $516 + $346 = $862
  • Joe gets the full, calculated amount of $862 since it is below the weekly benefit cap.

As mentioned above, Joe’s benefit amount will most likely go up a bit since the SAWW is anticipated to be updated before the benefit goes into effect May 2026.

Now, let’s say Jenn makes $90,000 (or $1,730.77 per week), her weekly benefit would be $1,114 calculated as follows:

• Step 1:
  • Determine 50% of SAWW ($1,144.67), rounded up to the nearest dollar = $573
  • Jenn gets 90% of that amount, rounded up to the nearest dollar, just like Joe = $516
• Step 2:
  • Determine the amount of Jenn’s wages above $573: $1,730.77 - $573 = $1,157.77
  • Jenn gets 66% of that portion = $765.
• Step 3:
  • Add the amounts from Step 1 and Step 2: $516 + $765 = $1,281
  • Since this amount exceeds the maximum weekly benefit, Jenn’s benefit is capped at the max. benefit of $1,144.67 based on current SAWW.

As you know by now, Jenn’s actual numbers would change depending on any future SAWW updates – but you get the idea.

It’s also worth noting that Maine does not require a minimum weekly benefit amount.

* Please note: The Maine Dept. of Labor publishes the SAWW annually on July 1st and it remains in effect for benefit calculation purposes through June 30 of the following calendar year. The provided examples use the current SAWW for illustration only. Actual ME PFML benefit calculations would use the SAWW in effect on the July 1 immediately preceding the date of application for ME PFML benefits or of the start of the leave, whichever is earlier.

How Much Will the ME PFML State Plan Cost?

The rate for the State Plan is set by the Maine Department of Labor (MDOL) and structured as a percentage of an employee’s covered wages up to the Social Security cap.

Through December 31, 2027, the following rate will remain in effect:

• For employers with 15+ employees, the total contribution rate is set at 1% (consisting of 0.50% employer share and 0.50% 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 0.50% maximum employee contribution.
• For small employers with less than 15 employees, the total contribution rate is set at 0.50% and employers can deduct the entire amount from the employee. Employers still have the option to pick up all or part of their employees’ required contributions.

Please note: For the 2028 calendar year and each calendar year thereafter, the contribution rate will be set by the Maine DOL no later than October 1 for the coming calendar year.

How are wages defined?

Wages are defined as all remuneration for personal services, including tips and gratuities, severance and terminal pay, commissions, and bonuses.

Is There a Private Plan Insurance Option?

Yes, Maine employers have the option to provide benefits through the ME PFML State Plan or an approved Private Plan. As we get closer to Private Plan applications beginning on April 1, 2025, we will share more details on this topic. Sign up for updates here to stay in the loop.

What Are Key Dates Leading Up to ME PFML Going Into Effect?

The 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 Maine’s applicable laws and regulations as of the publication date and may change as regulations evolve or Maine 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.