PFML premium rates to come down in 2024

Washington’s total Paid Family & Medical Leave (PFML) premiums are expected to decrease in 2024, dropping slightly from 0.8% to 0.74%. Employers will be on the hook for 28.57% of the total premium, with employees picking up the remaining 71.43%.

As a reminder, employer premiums only go towards funding the PFML medical leave program, while employee premiums go towards both medical leave and family leave. In 2023, the employer/employee split was 27.24% to 72.76%. Only employers that have 50 or more employees are required to pay employer premiums.

At a recent PFML Advisory Committee meeting, Employment Security Department staff said that while there was expected to be a drop in rates in 2024, 2025 would likely see a rate increase as new ratemaking procedures take effect. Staff made several recommendations about how the department could avoid volatility in rates and improve program financial health with a gradual approach to rates in the future.