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How Much Does MA
Paid Family & Medical Leave Cost?

How much Massachusetts Paid Family & Medical Leave (PFML) costs depends on who is providing the coverage. Rates vary depending on if the employer chooses the State Plan, to self-insure, or to purchase fully-insured coverage from a private insurance carrier – like ShelterPoint*.

Private Plan rates are not tied directly to the State Plan contribution rate. Private Plans must be equal to or more generous than the State Plan and – most importantly – they must not cost the employee more in terms of their maximum employee contribution.


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How MA Paid Family & Medical Leave Maximum Employee Contributions Work With the State Plan

 

In Massachusetts, the total contribution rate for the State Plan is split between employer and employee for employers with 25+ employees; employers with 24 or fewer employees are exempt from contributing the employer portion to the State Fund. Contributions are capped at the income limit set annually by the Social Security Administration.

 

Maximum contributions for groups with 25+ employees

For groups of 25+, the total State contribution rate is 0.88% of eligible wages in 2024, which includes the employer and employee share of the cost of Paid Family & Medical Leave.  The total contribution rate can be broken out as follows:

Employers with 25+ employees Medical Leave Portion Family Leave Portion

Contribution as a % of eligible wages
Total Contribution to State Fund
(employer & employee combined)
0.88%
0.70% 0.18%
Maximum employee portion 40% of 0.70 = 0.28% 100% of 0.18 = 0.18%
Total max. employee contribution 0.46%
Maximum employer portion 60% of 0.70 or 0.42% 0%
Total max. employer contribution 0.42%

 



Maximum contributions for groups with less than 25 employees

The chart below shows the statutory contribution rates for employers with less than 25 employees. These smaller employers are not required to pay the employer share of the medical leave contribution rate (refer to above chart). So while the cost of PFML is fully funded by employee contributions in these cases, it is important to note that the total maximum employee contribution remains the same regardless of employer size—0.46% for 2024.

Employers with 24 or less employees Medical Leave Portion Family Leave Portion

Contribution as a % of eligible wages
Total Contribution to State Fund
(employer & employee combined)
0.46%
0.28% 0.18%
Maximum employee portion 100% of 0.28 = 0.28% 100% of 0.18 = 0.18%
Total max. employee contribution 0.46%
Maximum employer portion Exempt 0%
Total max. employer contribution 0.0%
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So, in either case, the maximum contribution an employer can deduct from an employee’s eligible wages for 2024 is approximately $0.46 per $100 capped at the annual income limit set by the Social Security Administration for the Social Security Program.


How MA Paid Family & Medical Leave Contributions Work for Private Plans

Fully-insured private plans are underwritten by insurance carriers and rates are not tied directly to the State plan rate — they can be lower or higher than the State Plan rate. 

However, a private plan must not cost employees more than they would be required to contribute for the State Plan.

So, for a fully-insured private plan the maximum employee contribution would be the lesser of:

  • the maximum employee contribution set by the State, or
  • the private plan rate if lower
    • Remember, employers cannot profit from providing PFML coverage to their employees!

If the private plan rate is higher than the State rate, the employer would be required to fund the portion of the rate that exceeds the maximum employee contributions amount (plus any portion of employee contributions they would like to cover—since an employer may, at their discretion, pick up all of a portion of the employee share of contributions).

Employers with approved private plans are exempt from remitting contributions to the State Fund, and would instead remit contributions to their private plan.

Want to see about how much PFML will cost? Estimate your PFML contributions here .



Private Plan Considerations

Price is not the only factor in choosing a fully-insured private plan for your business. There are other considerations, such as experience and scalability– which translate into fast turnaround times for claims processing, and smooth service.  Learn more about Private Plans, and how to make the switch here


 

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MA Paid Family & Medical Leave Premium Rates and Contributions FAQs

What are eligible wages for MA Paid Family & Medical Leave?

MA PFML uses the MA Unemployment Law’s definition of wages, which includes, but is not limited to:
  • salaries,
  • commissions,
  • bonuses,
It can also include the reasonable cash value of:
  • board,
  • rent,
  • housing,
  • lodging,
  • payment in kind, and
  • all remuneration paid in any medium other than cash.
For a full listing of the definition and exceptions, please reference MA Unemployment Law 151A, Section 1 (s).

Learn More About MA Paid Family & Medical Leave

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At ShelterPoint, we stay on top of all the latest news, updates, and information about Paid Family & Medical Leave,
 so we can pass it on to you. Sign-up for updates now to stay in the know!


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*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): Policy Form# SPL PFMLP 0820 MA.

The information in this material is based on our knowledge of the current MA Paid Family & Medical Leave law and regulations. If the Department of Family & Medical Leave revises the regulations, adopts new policies or if the law itself is amended, we will update this document. This document is not intended to be and should not be construed as legal advice. Employers are encouraged to consult employment law counsel for legal advice.

 

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