Minnesota Paid Leave premiums won't increase for 2027, DEED says
Minnesota's new paid leave law: What you need to know
Minnesota's new Paid Family and Medical Leave Law, which allows up to 20 weeks of leave and paid benefits, will take effect starting Jan. 1, 2026. It allows for 20 weeks of leave, including leave for family and medical issues. The law typically pays out between 55% and 90% of a workers regular wages.
ST. PAUL, Minn. (FOX 9) - The premium rate for the Minnesota Paid Leave program will not increase in 2027, state officials announced Friday.
Minnesota Paid Leave premiums won't increase next year
What we know:
The Minnesota Department of Employment and Economic Development (DEED) said the payroll tax deductions for the paid leave program will remain steady at 0.88% of covered wages for 2027.
While initial funding for payments came from a $668 million benefit account established when the paid leave law was enacted in 2023, the program is now fully funded by premiums. Employers can collect up to half the amount —0.44%—from employees, or they can choose to cover more.
DEED reports that so far in 2026, premium collections are "broadly in line" with the cost of payments made to Minnesotans taking paid leave. The state projects the program will remain at a sustainable level in 2027, based on an actuarial analysis of data that includes studies of other states.
By the numbers:
Under the law, Minnesotans can take up to 12 weeks of family or medical leave, with a maximum of 20 combined weeks per year. The wage replacement is partial, capped at the state's average weekly wage of about $1,423.
Over 75,000 Minnesotans have taken advantage of the paid leave program so far in 2026, according to DEED. The state has paid out over $600 million to those workers on approved leave.
The Source: