Minnesota’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 needed to begin submitting the quarterly wage reporting on October 31, 2024, to comply with their Minnesota Paid Leave obligations. So, while we wait for the Minnesota Paid Leave rules to be adopted in mid-2025, let’s level-set first with a quick overview of the details of this program. As established by Minnesota’s Paid Leave Law, MN Paid Leave will become a required benefit for Minnesota employers to provide beginning January 1, 2026.

Other than tribal nations, the federal government, and self-employed individuals, MN Paid Leave applies to all employers with employees working in MN regardless of size, including private employers, municipalities, and local government. Tribal nations, self-employed individuals, and independent contractors have the right to opt in to coverage if they wish.

What Will MN Paid Leave Cover?

Minnesota Paid Leave, Minnesota’s version of a state-mandated Paid Family & Medical Leave (PFML) program, provides eligible employees with partial income replacement for job-protected leave during critical life events. Starting January 1, 2026, a covered employee is eligible for up to 20 weeks of combined leave in a benefit 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 or pregnancy.
• Safety leave: To seek medical attention or to stay safe or to help a family member seek medical attention or stay safe because of domestic abuse, sexual assault, or stalking.
• Qualifying exigency: For emergencies related to a family member’s call or order to active duty.

What Will the MN PFML Benefit Amount Be?

As it stands right now, the program currently enacted provides a maximum benefit set at 100% of the Minnesota state average weekly wage (SAWW)*, which changes annually. For reference, the current MN SAWW is $1,372, which compares to $71,344 annualized – but this amount may increase slightly since we expect a SAWW update before the benefit goes into effect January 2026.

The MN 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

Calculate 90% of the employees’ 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 AWW of $1,096.15), his weekly benefit amount would be $889 based on the current SAWW and calculated as follows:

• Step 1:
  • Determine 50% of SAWW ($1,372), rounded up to the nearest dollar = $686
  • Joe gets 90% of that amount, rounded up to the nearest dollar = $618
• Step 2:
  • Determine the amount of Joe’s wages above $686: $1,096.15 - $686 = $410.15
  • Joe gets 66% of that portion, rounded to the nearest dollar = $271
• Step 3:
  • Add the amounts from Step 1 and Step 2: $618 + $271 = $889
  • Joe gets the full calculated amount of $889 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 January 2026.

Now, let’s say Jenn makes $100,000 (or $1,923.08 per week), her weekly benefit would be $1,372 calculated as follows:

• Step 1:
  • Determine 50% of SAWW ($1,372), rounded up to the nearest dollar = $686
  • Jenn gets 90% of that amount, rounded up to the nearest dollar = $618
• Step 2:
  • Determine the amount of Jenn’s wages above $686: $1,923.08 - $686 = $1,237.08
  • Jenn gets 66% of that portion, rounded to the nearest dollar = $817

• Step 3:
  • Add the amounts from Step 1 and Step 2: $618 + $817 = $1,435
  • Since this amount exceeds the maximum weekly benefit, Jenn’s benefit is capped at the max. benefit of $1,372 based on the 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 Minnesota does not require a minimum weekly benefit amount.

* Please note: Minnesota’s SAWW gets adjusted annually and goes into effect for benefit calculation purposes the last Sunday in October of the following calendar year.

How Much Will the MN Paid Leave State Plan Cost?

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

The total premium rate in 2026 is 0.88% (0.61% for medical leave and 0.27% for family leave).

• For employers with 30+ employees, the total premium rate is set at 0.88% (consisting of a 0.44% employer contribution and a 0.44% employee contribution) 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 30 employees, who have an average employee wage of less than or equal to 150% of the SAWW for the base period: The total premium rate is set at 0.66% (consisting of a 0.22% employer contribution and a 0.44% employee contribution). Employers still have the option to pay for all their employees’ required contributions.

How are wages defined?

"Wages" means all compensation for employment, including commissions; bonuses, awards, and prizes; severance payments; standby pay; vacation and holiday pay; back pay as of the date of payment; tips and gratuities paid to an employee by a customer of an employer and accounted for by the employee to the employer; sickness and accident disability payments, except as otherwise provided in this subdivision; and the cash value of housing, utilities, meals, exchanges of services, and any other goods and services provided to compensate an employee.

Is There a Private Plan Insurance Option?

Yes, Minnesota employers have the option to provide benefits through the MN Paid Leave State Plan or an approved equivalent Private Plan. A fully insured, approved Private Plan is an alternative to the State Plan. Generally speaking, Private Plans need to at least meet or exceed the rights, protections, and benefits of a State Plan. Details on Private Plan requirements specific to MN are coming, so sign up for updates here.

The application process for equivalent Private Plans is expected to open in the spring – summer of 2025. As we learn more information about equivalent Private Plan application timing, we will share more details on this topic. Sign up for updates here to stay in the loop.

Quoting with ShelterPoint¹, however, is already available to allow for a seamless process when it opens up.

What are the advantages of a Private Plan?

Approved Private Plan carriers 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.

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

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 Minnesota’s applicable laws and regulations as of the publication date and may change as regulations evolve or Minnesota Department of Employment and Economic Development 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.

Minnesota’s Paid Leave Law (as reflected in Minn. Stat. § 268-B.01 et seq) and its implementing Regulations (proposed Minn. R. §3317.0010 et seq.) established by the Minnesota Department of Employment and Economic Development govern this Private Plan and its interpretation and administration. Available in MN only.

Underwritten by: ShelterPoint Life Insurance Company (principal office in Garden City, NY) in: MN (form# pending); rates subject to approval by the Minnesota Department of Commerce.