Updated October 13, 2021 - The Social Security Administration announced the new wage cap for 2022, $147,000. This means that the maximum contribution a worker with eligible wages that meet or exceed the Social Security wage cap can be required to pay for MA PFML will be $505.68 in 2022.
MA Paid Family & Medical Leave Contribution Rates for 2022
The 2022 State contribution rate for the Massachusetts Paid Family & Medical Leave program will be 0.68% of eligible wages — 0.56% for the Medical leave component and 0.12% for Family leave. The maximum employee contribution for Family and Medical leave combined will be 0.34%. Employer size determines whether or not an employer is required to contribute toward the cost of the Medical Leave portion (Family leave is 100% funded by employee contributions). Check here for a detailed breakdown of employer/employee contribution obligations for employers with 25+ employees and employers with fewer than 25 employees.
The updated rate reflects a decrease of 0.07% from the 2021 contribution rate which was 0.75% for the first year of the Paid Family & Medical Leave program.
Private plan rates are not tied to the State contribution rate so your 2022 rates would not be affected. Be sure to speak to your broker with any questions you may have on the rate.
MA Paid Family & Medical Leave Maximum Weekly Benefit Amount for 2022
The maximum weekly benefit amount may change annually based on the annually adjusted State average weekly wage (SAWW).
On October 1, 2021, the Commonwealth of Massachusetts released the updated SAWW of $1,694.24 to be used for 2022 benefit calculations, bringing the 2022 maximum benefit to $1,084.31. This is up from $850 in 2021, PFML’s inaugural year.
How is the maximum benefit set?
The maximum benefit is capped at 64% of the applicable SAWW. The adjusted SAWW as released every October applies to benefit calculations for the following calendar year.
How do you calculate the weekly benefit for 2022?
The weekly benefit calculation for 2022 is made up of two factors:
- 80% of the portion of the employee’s weekly wage that is equal to or less than $847.12 (50% of SAWW);
- plus, 50% of the portion of the individual’s weekly wage that exceeds $847.12 (50% of SAWW);
- together, capped at the maximum weekly benefit of $1,084.31
Additional Paid Family Medical Leave Updates to Look Out For
Later this fall, the federal 2022 Social Security Income Limit will be announced. You can then apply the new 2022 state contribution rates to eligible wages to determine the new employee contribution cap using the new 2022 Social Security Income Limit. SIGN-UP now to stay up-to-date on all the latest MA PFML news!
Learn more about 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. Any MA PFML information is as of the blog post’s date stamp; it is based on the applicable statutes and regulation, and may change as regulations evolve or MA issues guidance regarding Paid Family and Medical Leave laws and regulations.
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, and its wholly-owned subsidiary ShelterPoint Insurance Company, a FL-domiciled carrier, depending on the state. ShelterPoint is a registered service mark.
Massachusetts Paid Family & Medical Leave is available in MA only and will be underwritten by: ShelterPoint Life Insurance Company (a New York-domiciled carrier): Form# SPL PFMLP 0820 MA