Massachusetts PFML in 2027: What the New Contribution Structure Means for Employers

If you run a business in Massachusetts, the way your Paid Family and Medical Leave (PFML) contributions are structured changes on January 1, 2027. Here’s the good news: the total rate is not going up. What changes is how the contribution is split between the two types of leave, and which side, employer or employee, funds each one. This one is Massachusetts specific, so it matters for your MA locations and payroll.

Start with the total

The total PFML contribution rate stays at 0.88% of eligible wages for 2027, the same as 2026. This is a change in structure, not a rate increase. Keep that in mind as you read the rest.

What is actually changing

Right now, employers help fund the medical leave portion of PFML. Starting January 1, 2027, the employer contribution shifts over to the family leave portion, and medical leave becomes fully employee funded. The amount each side pays overall stays about the same. The money is simply attributed to a different type of leave. This comes from Chapter 101 of the Acts of 2026.

The 2027 split for employers with 25 or more covered individuals

• Total: 0.88% of eligible wages
• Family leave: 0.70%, with the employer paying 0.42% and up to 0.28% withheld from the employee
• Medical leave: 0.18%, which can be fully withheld from the employee
• Most an employee can be charged: 0.46% of eligible wages
• Employer share: 0.42% of eligible wages

Those last two numbers, 0.46% from the employee and 0.42% from the employer, are the same as 2026. Contributions are also capped at the Social Security taxable wage maximum, which the state updates each year.

If you have fewer than 25 covered individuals

Small employers are not required to pay the employer share, so this group sees essentially no change. The effective rate stays 0.46% of eligible wages, and all of it can be withheld from employees, just as before.

What you should actually do

The change is lighter than it sounds, but a short checklist keeps you clean:

• Confirm your payroll setup. Make sure 2027 contributions are coded to the correct leave type. Your payroll provider likely handles this automatically, but it is worth a check.
• Tell your team the deduction is steady. The most an employee can be charged, up to 0.46%, does not change. Only the breakdown behind it does.
• Check your private plan, if you have one. If you use an approved private plan instead of the state program, confirm it still meets state requirements under the new structure.
• Watch for the official rate notice. The Department of Family and Medical Leave confirms rates each year.

This is general information, not legal or tax advice. For the exact figures and to run your own numbers, use the state’s PFML employer contribution rates and calculator.

NARFA helps our member businesses stay ahead of benefits and compliance changes like this one, so your team spends less time tracking state updates and more time on the work that matters. Please contact NARFA today to learn more about our programs.