WASHINGTON STATE PAID FAMILY LEAVE PREMIUMS SET TO INCREASE

Starting in January, the paid family leave program’s premium rate will be 0.92% of an employee’s gross wages, up from the current 0.74% rate. State law requires the program to recalculate the rate every year.  The increase is due to the continued growth of the program, more employees becoming eligible for benefits following the pandemic, and the end of a collective bargaining agreement.  The program allows people to take paid time off from work if they have a serious health condition, if they’re caring for family members, or if they have a new child. It’s funded by a tax that workers and employers both pay. Next year, employers will pay 28.48% of the total premium, and employees will pay 71.52%, a similar breakdown to this year. 

Next year, an employee making $50,000 a year will pay an annual premium of $328, according to the Employment Security Department. That’s up from $264 this year and $291 in 2023. So far in 2024, more than 175,000 workers have received benefits, totaling $1.35 billion – more than any year since the program launched in 2020. In total, the program paid out more than $5 billion to more than 510,000 employees since it began, and it anticipates another 35% growth over the next two years. Meanwhile, the agency is asking for authority from the state to hire 98 new employees to deal with the increase in applications. Without staffing increases, the department says the program will not be adequately staffed to respond to applications and customer service calls.