The Massachusetts Department of Family and Medical Leave (the “Department”) has announced that, effective January 1, 2023, the Massachusetts Paid Family and Medical Leave (MAPFML) contribution rate for employers with 25 or more covered individuals will decrease from 0.68% of eligible wages down to 0.63% of eligible wages. The contribution can be split between covered individuals’ payroll or wage withholdings and employer contributions as described on the Department’s website. Employers should begin working with their payroll departments and providers now to ensure that their wage deductions and MAPFML contributions are adjusted accordingly effective January 1, 2023.

Employers who are using the private plan option may want to evaluate whether that option continues to be the best option for the company, especially given that this is the second year in a row that the contribution rate has decreased.