Delaware’s Paid Family and Medical Leave Starts in 2025

Starting in 2025, Delaware joins the growing list of states with a mandatory Paid Family and Medical Leave (PFML) program.

This new law gives employees more flexibility when life happens — but it also changes how payroll deductions work for your business. And if your payroll provider doesn’t set it up correctly? You could be covering more of the cost than the law requires.

What Delaware PFML Covers

Under Delaware’s Healthy Delaware Families Act, eligible employees can take up to 12 weeks of paid, job-protected leave to:

Care for a newborn or newly adopted child
Provide care for a seriously ill family member
Recover from their own serious medical condition
Manage certain family responsibilities tied to military service

How the Program Is Funded

Delaware’s PFML program is shared-funded between employers and employees:

Total Contribution Rate: 0.8% of employee wages
Split: 0.4% paid by the employee (via payroll deduction) + 0.4% paid by the employer
Applies to wages up to the Social Security wage base (in 2025, $168,600)

If you have fewer than 10 employees, you may qualify for exemptions from certain leave types — but if you are covered, you can (and should) deduct the employee’s portion from their paycheck.

Why Employers Could Be Overpaying

We’ve seen it happen in other states:

Some payroll providers skip the employee deduction entirely
Others roll PFML into a generic tax line and don’t separate it
A few decide to cover the whole contribution themselves without telling the employer they have options

If your payroll company isn’t tracking Delaware PFML as a distinct, shared contribution, you might be paying 100% of the cost instead of just your share.

Compliance Risks to Watch

Beyond overpaying, incorrect PFML setup in Delaware could also mean:

Inaccurate reporting to the Delaware Department of Labor
Employee benefit delays if contributions aren’t reported correctly
Penalties for late or missed contributions

How Baron Payroll Handles Delaware PFML

When we onboard a Delaware business, we:

Configure the payroll system to split PFML contributions
Show the deduction as a separate line on each employee’s pay stub
Keep you informed on any annual rate changes or law updates
Ensure 100% compliance with reporting requirements

This means you pay only what the law requires — nothing more.

Bottom Line for Delaware Employers

Delaware’s PFML law is new, and mistakes are most common during the first year of implementation. The sooner you confirm your payroll setup, the more you’ll protect both your business and your employees’ benefits.