OLYMPIA – Benefits from Washington’s Paid Family & Medical Leave program are a vital source of support for Washington workers. More than 221,000 individuals have claimed Paid Leave benefits in 2026 thus far, totaling more than $1.8 billion dollars.
Starting Jan. 1, 2027:
- The premium rate will be 1.2%. The rate for 2026 is 1.13%.
- Employers will pay 29.3% of the total premium and employees will pay 70.7%.
- Second Substitute House Bill 2345, passed earlier this year in response to new IRS guidance on tax liability issues relating to Paid Leave, takes effect. The bill modifies the distribution of employer and employee contributions between family and medical leave premiums without affecting how the total premium is divided between employees and employers.
Paid Leave is funded by premiums collected from employees and employers in Washington state. By law, the Employment Security Department recalculates the premium rate annually in October based on program usage and premiums collected the previous year.
Businesses classified by Employment Security as having fewer than 50 employees are not required to pay the employer portion of the premium, unless they opt to do so. However, they must still collect the employee premium or pay employees’ premiums on their behalf. Employment Security calculates business sizes annually on September 30.
Employers will continue to use the 2026 rate and premium split for Q3 2026 and Q4 2026 reporting. Q3 reports are due in October.
More information: paidleave.wa.gov/updates.