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UPDATE: Washington Paid Family & Medical Leave Premium Rate Changes Effective January 1, 2026

UPDATE / CORRECTION:

Washington Paid Family & Medical Leave Premium Rate Changes Effective January 1, 2026

Beginning January 1, 2026, the Washington Paid Family and Medical Leave (PFML) premium rate will increase to 1.13% of each employee’s gross wages. These premiums, collected through quarterly reporting, fund the state’s Paid Leave program. As required by law, the Employment Security Department (ESD) recalculates the premium rate each October based on the prior year’s contributions and benefits paid.

Updated Contribution Split

  • Total premium rate: 1.13% of gross wages

  • Employer share: 28.57%

  • Employee share: 71.43%
    (For comparison, the 2025 rate was 0.92%, with a 28.48% employer share and 71.52% employee share.)

Small Employer Exemption

Businesses classified by ESD as having fewer than 50 employees during the 2026 calendar year are not required to pay the employer portion of the premium. However, these employers must still collect the employee portion or may choose to pay it on behalf of their staff.

Employer Action Steps

  • Communicate changes to your employees before January 1, 2026.

  • Begin withholding at the new rate for wages paid on or after January 1, 2026 (excluding tips).

  • Cease collections once an employee’s wages reach the 2026 Social Security wage cap of $184,500, but continue to report total wages.

  • First-quarter premiums using the new rate are due by April 30, 2026. Remember, you cannot retroactively withhold premiums once wages have been paid.

Updated Employer Resources

ESD will release updated employer materials—including the 2026 required workplace poster, paystub insert, and employer guide updates—by the end of November. These will be available on the Employer Roles and Responsibilities page.

Upcoming Program Enhancements

Employers should also anticipate the following policy updates effective in 2026:

  • Expanded job protection: Applies to employers with 25 or more employees.

  • Health care continuation: Clarifies employer obligations to maintain health benefits during Paid Leave.

  • Paid Leave & FMLA coordination: Offers new guidance for concurrent eligibility and job protection.

  • Reduced weekly claim minimum: Lowers the minimum from 8 hours to 4 hours missed per week for eligibility.

  • Small business grants: Expands the grant program to help small employers offset costs related to employee leave.

Pivotal Forensic Accounting & Audits encourages all Washington employers to review payroll systems, update employee communications, and ensure compliance with these new Paid Leave requirements prior to year-end.

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