New York PFL · NY DFS · Aug 2026 📖 4 min read

New York Paid Family Leave 2027: 0.452% Rate, $451.81 Cap

New York's Department of Financial Services has set the 2027 Paid Family Leave employee contribution rate and annual cap. Here's how the numbers compare with 2026 and what payroll teams should change before the new year.

einTime Editorial Team

Payroll Compliance Analysts

Oct 5, 2026Published

4 min readRead time

New YorkCategory

⚡Key Takeaways for Payroll Professionals

The 2027 PFL employee contribution rate is 0.452% of gross wages

The new rate takes effect on January 1, 2027.
The maximum annual employee contribution rises to $451.81

This is up from $411.91 in 2026.
The maximum weekly benefit increases to $1,287.91

This is 67% of the $1,922.25 state average weekly wage.
DFS issued the 2027 rate decision on August 31, 2026

The decision sets the contribution rate and annual cap for the 2027 plan year.
Employers must notify employees and stop withholding at the annual cap

Tell employees about the deduction, and stop withholding once an employee's contributions reach $451.81 for the year.

New York's 2027 Paid Family Leave Contribution

On August 31, 2026, the New York Department of Financial Services (DFS) issued its 2027 Paid Family Leave (PFL) rate decision. Effective January 1, 2027, employees will contribute 0.452% of gross wages each pay period, with total annual payroll deductions capped at $451.81.

PFL premiums in New York are funded through employee payroll deductions. Employers must deduct the percentage from each paycheck until the annual maximum is reached.

📋 New York Paid Family Leave: 2026 vs. 2027

NY DFS / WCB

Item	2026	2027
Employee contribution rate	0.432%	0.452% +0.020 pts
Maximum annual employee contribution	$411.91	$451.81 +$39.90
Maximum weekly benefit	$1,228.53	$1,287.91 +$59.38

💡

How the Cap Works

The Workers’ Compensation Board’s 2027 deduction notice lists the state average weekly wage as $1,922.25. The maximum weekly benefit is 67% of that figure. Employers should stop deducting once an employee reaches the $451.81 annual maximum, so deductions must track actual wages paid during the year.

What Employers Must Do

The WCB’s 2027 PFL pay deduction notice reminds employers that they must provide employees with notice of the payroll deduction, deduct the applicable percentage each pay period, and cap annual deductions at the stated maximum. PFL provides job-protected, paid time off for bonding with a new child, caring for a family member with a serious health condition, and military family needs.

Payroll Action Steps

Before Jan 1, 2027

Change the PFL deduction rate to 0.452%

Update the rate in payroll for the first pay period that includes wages paid on or after January 1, 2027, and confirm the annual cap is set at $451.81.

Before Jan 1, 2027

Distribute the 2027 PFL deduction notice

Provide employees with the notice of payroll deduction, using the WCB notice for 2027 as a reference.

Review

Check cap logic for high earners and multi-assignment workers

Because the cap is annual, confirm that your system stops deductions once $451.81 has been withheld in the calendar year.

Best Practice

Update your employee communications

Let New York employees know their paycheck deduction will rise slightly in 2027 and what PFL benefits they can access.

📎 Source & Attribution

"2027 Paid Family Leave Rate Decision"

Source: New York State Department of Financial Services (DFS) · Published: Aug 31, 2026 · View source document ↗

This article represents independent analysis and editorial commentary by the einTime team, prepared for the benefit of payroll professionals. Content draws on publicly available regulatory documents and government publications. All compliance decisions should be verified against applicable regulatory guidance and reviewed with a qualified tax advisor or employment counsel.

Topics

New York Paid Family Leave PFL Payroll Deductions 2027 Payroll

einTime Editorial Team

Payroll Compliance Analysts · einTime Resource Center

The einTime editorial team tracks federal, state, and local regulatory developments affecting payroll operations and translates regulatory complexity into practical guidance for payroll professionals.

📋 In This Article

012027 Contribution Rate
02Employer Duties
03Payroll Action Steps

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New York Paid Family Leave 2027: 0.452% Rate, $451.81 Cap

New York's 2027 Paid Family Leave Contribution

What Employers Must Do

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