New York Paid Family Leave 2026

The New York State Department of Financial Services just announced the 2026 Paid Family Leave (PFL) contribution rate — and it’s going up again.

Starting January 1, 2026, the new employee contribution rate will be 0.432% of gross wages, an increase from last year’s 0.388%. That means every New York employer needs to update payroll deductions before the first paycheck of the new year.

Here’s What’s Changing

New York State Average Weekly Wage (NYSAWW): $1,833.63 — up 4.3% from 2025’s $1,757.19
Maximum Employee Contribution: $411.91 per year (up from $354.53 in 2025)
Maximum Weekly Benefit: $1,228.53 — that’s 67% of the NYSAWW
Maximum Annual Benefit (12 weeks): $14,742.36

Employees can still take up to 12 weeks of job-protected, paid leave at 67% of their average weekly wage, capped at the NYSAWW.

Important Payroll Notes for 2026

Continuous Leave Across Years: If an employee starts PFL in 2025 and it continues into 2026, their benefits are calculated using the 2025 rate — not the new one.
Intermittent Leave: If there’s a 3-month break between leave periods that cross into 2026, the new rate applies.
Combined Leave Limit: PFL and Disability Benefits Law (DBL) leave together can’t exceed 26 weeks in any 52-week period.

What This Means for Your Business

If you’re a New York employer, these changes mean one thing — it’s time to update your payroll settings and employee notices.

Here’s what you should do before January 1:

Update your payroll deduction rate to 0.432%.
Confirm your payroll system caps deductions once employees reach the $411.91 maximum.
Review your PFL insurance rider or self-funded plan to make sure it reflects the new rate.
Communicate with your employees. Let them know their PFL deductions and benefits are increasing slightly for 2026.
Track any leaves spanning 2025–2026 to ensure you apply the correct benefit year rate.

Baron Payroll’s Take

At Baron Payroll, we stay ahead of these updates so you don’t have to. Our system automatically applies the new PFL rate and cap for 2026 — ensuring every deduction is accurate and every employee stays compliant.

Whether you’re managing a construction crew or a professional office, we handle all the details behind the scenes:

PFL and DBL integration
ITIN and SSN worker compliance
Automated rate updates
Year-end reporting and notices

You won’t need to chase down new contribution tables or manually adjust anything — we take care of it all for you.

Bottom Line

For 2026, the New York Paid Family Leave rate is increasing to 0.432%, with a $411.91 annual cap and a maximum weekly benefit of $1,228.53.

With Baron Payroll, you’ll never have to worry about missing an update like this. We make sure your payroll is accurate, compliant, and stress-free — every single pay period.

Baron Payroll — Compliant. Simple. Done right the first time.

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