New contribution caps are an 11+% increase
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2026 New York PFL Rate Update: What HR & Payroll Pros Need to Know
The New York Department of Financial Services has announced the Paid Family Leave (PFL) contribution rate and benefit cap for 2026, effective January 1.
Key Details
This represents an 11.31% increase in the employee contribution cap compared to 2025.
Understanding Paid Family Leave and How It’s Funded
New York’s Paid Family Leave program provides eligible employees with job-protected, paid time off to bond with a new child, care for a family member with a serious health condition, or address needs related to a family member’s military deployment.
PFL coverage is provided as a rider on New York State disability insurance (DBL). Employers are responsible for maintaining this coverage and paying the premium. State law allows employers to recoup some or all of the cost through employee payroll contributions:
For a full overview of how PFL works, including employer responsibilities and employee rights, visit the HR One Paid Family Leave Guide.
What This Means for Employers
All employers should notify their employees of the new contribution and benefit rates.
For HR One payroll clients, contribution rates will be automatically updated in the system. If your organization deducts contributions from employees’ wages, provide a notice so employees understand why their withholdings will increase in 2026. Clear communication helps avoid confusion when the higher deduction appears on pay stubs.
What This Means for Employees
Employees earning below the NYSAWW ($1,833.63 per week / $95,348.76 annually):
These employees will see the amount deducted from their wages increase slightly because the contribution rate went up (from 0.388% to 0.432%). However, their maximum benefit may not increase, since PFL benefits are always capped at 67% of their own average weekly wage.
Employees earning at or above the NYSAWW:
These employees will also see their payroll contributions increase, but their maximum benefit rises from $1,177.32 to $1,228.53 per week because the NYSAWW has gone up.
At a Glance
| Item | 2025 | 2026 |
| Employee contribution rate | 0.388% | 0.432% |
| Max annual contribution | $354.53 | $411.91 |
| NYSAWW | $1,757.19 | $1,833.63 |
| Max weekly benefit | $1,177.32 | $1,228.53 |
Sample Employee Notice Language
“Beginning January 1, 2026, the New York State Paid Family Leave contribution rate will increase to 0.432% of gross wages, capped at $411.91 annually. If you use PFL, the maximum weekly benefit will rise to $1,228.53.”
PFL Contribution FAQs
Are all employees in New York eligible for Paid Family Leave?
Yes, with very few exceptions (see the guide linked to above for details). PFL is a required benefit, provided as a rider on the employer’s DBL policy. Employees may not opt out of coverage unless they will not work long enough to establish eligibility.
Who pays the PFL premium?
Employers are responsible for the premium but may recover the cost through employee contributions, within state-set limits.
How much can be deducted from employees?
In 2026, employers may withhold 0.432% of gross wages up to an annual cap of $411.91. Once an employee reaches that cap, no further deductions should be taken for the year.
Can an employer choose not to deduct contributions?
Yes. Employers may cover the full cost themselves instead of making deductions. They cannot, however, deduct more than the maximum allowed contribution.
What happens if an employee earns less than the cap?
The deduction is always 0.432% of actual wages. Employees earning less than $95,348.76 annually will contribute less than the $411.91 cap.
What about claims that start in 2025 and go into 2026?
Benefits are tied to the calendar year in which the claim was filed, so if an employee files a claim in December 2025, they will only be eligible to collect a maximum of $1,177.32 weekly, even though the claim could extend into 2026.
If you’d like help implementing these updates or drafting employee communications, contact HR One. Ask about our HR Foundations program for ongoing compliance support.