Plus: 3 reasons your insurance clients should privatize Paid Family Leave in New York now.
As typically happens this time of year, the New York State Department of Financial Services announced the new PFL Premium/EE contribution rate for next year. The state has increased the premium to a contribution of 0.388% of an employee’s gross wages, up to a maximum of $354.53 for the year. This represents an increase from the rate for 2024, which is 0.373%, with a maximum contribution of $333.25.
Benefits also increased slightly as the New York State Average Weekly Wage (NYSAWW) rose from $1,718.85 to $1757.19 for claims started on or after January 1, 2025. PFL beneficiaries can receive 67% of their wages, up to the NYSAWW, for up to 12 weeks. The maximum weekly benefit for 2025 is $1,177.
In NY, Paid Family Leave is fully funded by employees through payroll deductions. Employers in New York have the option to write the benefit through a private carrier or through the New York State Insurance Fund (NYSIF). As we approach the final quarter of the year, it’s a good time to review the advantages of writing Paid Family Leave through a top-rated, private carrier. The DBL Center can help you get started.
Faster, Personalized Service
If you’ve ever had to deal with New York State for insurance, taxes, licenses, or other aspects of daily life and business, you know that government agencies aren’t always the easiest. When your clients write their required PFL benefits through a broker, they’ll enjoy faster, personalized service, online claims processing, and all the other benefits you deliver.
As an insurance broker, when you rely on The DBL Center as your back-office staff, we make sure your clients receive the seamless service they deserve.
Flexible Payments
Private carriers offer the choice to receive benefits in the form of direct deposits, as opposed to a check or debit card. Benefits begin 18 days after you file the claim, and payments arrive bi-weekly after that for the duration of leave.
Cost Savings
Fast, friendly service is always important. But in today’s economy, business owners are concerned about costs above all else. The premium rate for PFL is set by the state and doesn’t change, even with private carriers. But, as you touch base with clients to discuss the benefits of privatizing PFL, you can also explore ways they can save money on NYS DBL and ancillary benefits, including dental, vision, and Group Life / AD&D.
Help Your Clients Privatize PFL and Family Medical Leave Now
By working with top carriers, The DBL Center leverages our relationships and volume of business to get our brokers the lowest premium rates and best benefit packages to help you grow your book of business and boost commissions.
Keep in touch with The DBL Center, our articles, and monthly newsletters to stay up to date on Paid Family and Medical Leave in other states as these programs expand across the country.
FAQs
What is the PFL tax rate in NY?
New York State funds statutory Paid Family Leave benefits through payroll deduction. The PFL tax rate in NY is 0.388% of an employee’s gross wages, up to a maximum of $354.53 in 2025.
What is the premium rate for NYS PFL?
The premium rate for NYS PFL has been set to 0.388% of an employee’s gross wages, up to a maximum annual contribution of $354.53 for 2025.
Can you work while on Paid Family Leave in NY?
Employees who hold two jobs are permitted to take Paid Family Leave from one or both jobs at the same time. If you take leave from both jobs at the same time, your benefits are still capped at 67% of the NYSAWW. If you collect PFL benefits, you can also work a side gig or earn money as a 1099 independent contractor, without reducing your benefit amount.
What is the difference between FMLA and PFL in NY?
FMLA, the Family Medical Leave Act, is a federal law that provides unpaid job protection if you need time off for a serious health condition or to care for a child under the age of 18 or with a mental or physical condition. It can be used concurrently with paid time off and can be taken in hourly increments. Paid Family Leave (PFL) is an employee-funded, employer-sponsored, mandatory benefit that provides partial wage replacement for workers to care for or bond with a child, to care for a seriously ill family member, or to take care of the home while a military spouse is deployed.
