Massachusetts Paid Family and Medical Leave Law: What’s Changing In 2026?

By Kayla E. Snider - Skoler Abbott P.C.

November 12, 2025

It’s that time of year again!  The Massachusetts Department of Family and Medical Leave (DFML) has issued its annual report and other important updates regarding the administration of Massachusetts Paid Family and Medical Leave law (PFML).  Here’s the scoop for employers on what’s up and what they need to do next. 

Trends in PFML Applications and Use 

First up, let’s talk about the Fiscal Year 2025 Annual Report issued by the DFML.  The report analyzes trends in applications for PFML from July 1, 2024 through June 30, 2025.  This report is compared to the FY 2024 report and here are some of the highlights: 

DFML approved 202,846 applications for PFML.  This is a 12.97% increase in approved applications from FY 2024.  Here are some points of interest:

• 107,460 (52.98%) of approved applications were for an employee’s own serious health condition – slightly higher than FY 2024
• 24,481 (12.07%) of approved applications were associated with recovery from childbirth and/or pregnancy – about the same as FY 2024
• 45,097 (22.23%) of approved applications were for family leave to bond with a child following birth, adoption or foster care placement – slightly lower than FY 2024
• 25,758 (12.70%) of approved applications were for a family member’s serious health condition – slightly higher than FY 2024
• 50 (0.02%) of approved applications were for military exigency leave and leave to care for a service member – about the same as FY 2024 

DFML also denied 35,964 (15.06%) applications for PFML.  This is about the same as the denial rate in FY 2024 and the reasons for denial are substantially the same as FY 2024, including the applicant did not fully complete the application or did not submit required documents, the documents submitted did not comply with DFML requirements, the applicant’s employer did not participate in the DFML’s PFML program, and the employee’s wages were to too low to qualify for PFML.

DFML approved 130,309 unique, covered individuals.  This means that 72,537 (35.76%) of applications were for individuals taking more than one type of leave under the PFML.  This is a 10.10% increase from the number of unique individuals approved in FY 2024.  

The age group with the most approved applications was 31 to 40 year olds, who accounted for 36.31% of the total approved individuals.  This age group accounted for the most approved applications in FY 2024.

DFML reduced the time it takes to make an initial determination on an application to 9 calendar days.  This is 2 calendar days faster than the processing time in FY 2024.  DFML also reduced the time it takes to make a final determination on an application to 11 calendar days.  This is 7 calendar days faster than the processing time in FY 2024.

Finally, DFML paid out $1,241,998,293.24 in PFML benefits.  This is an 18.32% increase in benefits paid during FY 2024. 

Updates to PFML Administration

The Contribution Rate is Staying the Same for 2026

For employers with 25 or more employees…

• Total Contribution = 0.88%
• Family Leave Contribution = 0.18% (can be paid for solely by employees)
• Medical Leave Contribution = 0.70% (can be split between employers and employees)
    • Employer Share = 0.42%
    • Employee Share = 0.28%

For employers with fewer than 25 employees…

• Total Contribution = 0.46%
• Family Leave Contribution = 0.18% (can be paid for solely by employees)
• Medical Leave Contribution = 0.28% (can be paid for solely by employees)

PFML contributions are not paid by the employee or employer on any income over the Federal Social Security taxable maximum.  For 2026, the maximum is $184,500.00.

Employers are required to provide notice to employees regarding the contribution rates at the time of hire and at least 30 days in advance of any contribution rate change. 

The Maximum Weekly Benefit is Increasing 

As I am sure you are all aware, PFML provides partial wage replacement for employees up to a maximum weekly payment based on a calculation involving the employee’s average weekly wage and the Massachusetts average weekly wage, which is calculated and published yearly.  For 2026, the Massachusetts average weekly wage is $1,922.48 and the maximum weekly benefit is $1,230.39 (this is a 5.10% increase from FY 2024). 

Due to this minor change, employers will be required to give current employees a new notice no later than December 2, 2025.  The notice, for employers with more than 25 employees, is available here.  For employers with fewer than 25 employees, the notice is available here.  For notices translated into another language, please see the DFML website here. 

New Federal Tax Treatment 

You should have all received a notice by now, but in case you were not aware, the IRS issued a revenue ruling that requires certain employers to pay the employer share of Federal Insurance Contributions Act (FICA) tax, for Social Security and Medicare, and the Federal Unemployment Tax Act (FUTA) tax on some employee benefits.  As a reminder, this requirement only applies to:

• Employers with 25 or more employees; and
• Employee medical leave benefit payments. 

Employers will be responsible for reporting these medical leave benefits on employees’ Form W-2’s.  If you administer PFML through the DFML, then you will be provided notice of the payments and taxes withheld through payment updates to your employer portal.  If you administer PFML through a private plan, you should consult with your plan provider regarding your obligation to comply with this new tax requirement. 

For more detailed information about this new tax requirement, the DFML issued a memorandum that can be found here.  If you have further questions about this new tax requirement, you should consult an experienced tax professional. 

Employers Must Post Updated Notices and Workplace Posters

By now, most of you know that you must post a PFML poster prepared by the DFML in a conspicuous location in the workplace.  The poster must be available in English and each language which is the primary language of 5 or more individuals in the employer’s workforce.  The DFML provides translations in 13 languages.  The employer is responsible for providing translation into any language not provided by DFML. 

For 2026, the DFML has updated the posted to reflect the increase in the weekly benefit amount, which is effective January 1, 2026.  This means you will need to post a new poster by January 1, 2026.  The workplace poster (in English) can be found here, while other translations can be found on the DFML website here.

Action Steps for Employers

1. Review tax procedures to ensure you are complying with the new tax requirement.
2. Send out updated notices to employees by December 2, 2025.
3. Post an updated workplace posted by January 1, 2026.
4. Double check the PFML policy in your employee handbook to ensure that it aligns with PFML requirements. 

www.skoler-abbott.com