Demand for WA paid family leave to increase premiums in 2025
SEATTLE - Washington's paid leave premium rate will increase starting January 1, 2025.
This has been a record year for family and medical leave claims, leaving the program's account short on cash.
In 2023, the program ran a deficit, leading the state legislature to pump $200 million into the fund. While this lowered premiums for workers in 2024, it does mean the difference between revenue and cost will need to be remedied again in 2025.
The premium rate will increase from 2024's rate of 0.74% to 0.92% on January 1.
For example, next year, an employee making $50,000 a year would be paying a $328 annual premium. This represents an increase from $264 this year and $291 in 2023, according to Employment Security Department.
The department points to three main reasons for increased demand that will lead to next year's premium hike.
Several factors account for the program’s increase in benefit payments. These include:
- Organic program growth.
- Sunsetting the collective bargaining agreement provision.
- More employees becoming eligible for benefits with rising employment after the pandemic.
Employers with fewer than 50 employees will not have to pay the beneficiary's usual 28.48% contribution to the fund. However, they remain responsible for collecting the premium from employees.
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