New York is once again updating its New York Paid Family Leave (PFL) program – the state managed insurance program that provides partial wage replacement for eligible employees who take time off to:

• bond with a child,
• care for a family member with a serious health condition, or
• deal with the deployment or active duty of a family member in military service.

As a reminder, PFL allows up to 12 weeks of job-protected, partially paid leave within a 52-week period. Eligibility is based on duration of employment: full-time employees are eligible after 26 consecutive weeks of employment, and part-time employees working fewer than 20 hours per week are eligible once they have worked 175 days.

The changes set to take effect on January 1, 2026 once again increase the employee benefit and contribution caps established by the PFL program.

Maximum Weekly Benefit Cap Increases to $1,228.53

Employees who take PFL are entitled to benefits equal to the lesser of 67% of their average weekly wages or 67% of the current New York State Average Weekly Wage (NYSAWW). Effective January 1, 2026, the NYSAWW will increase to $1,833.63. Accordingly, the weekly benefits rate for PFL taken in 2026 will be capped at $1,228.53, which is an increase of $51.21 over the current benefits cap.

2026 Increases to Employee Contribution Rate and Annual Contribution Cap

The PFL program is funded by employees through payroll deductions that are calculated based on each employee’s gross wages per pay period. In 2026, the employee contribution rate will increase from 0.388% to 0.432% of gross wages per pay period. Additionally, the annual contribution cap for individual employees will increase from $354.53 to $411.91. Employees earning less than the NYSAWW will continue to contribute less than the annual contribution cap.

A Quick Refresher on Paid Leave in New York

Remember that PFL benefits are separate and distinct from those provided by the New York State Paid Sick Leave (PSL) law, under which accrued benefits vary on the basis of employer size. PSL has a range of permitted uses that overlap with the usage reasons for PFL, but also include personal sick days and medical appointments, and a broad range of absences for safe leave. It was PSL that expanded to include an entitlement of 20 hours of paid prenatal leave at the beginning of the year.

New York City employers – already covered by state law – are also subject to the Earned Safe and Sick Time Act (ESSTA), which, as we wrote about here, was also formally modified earlier this year to address paid prenatal leave and will soon provide additional unpaid time and expand permissible reasons for use.

End of Year To-Dos for New York Employers

Employers should prepare for the 2026 updates by reviewing their leave policies and adjusting payroll mechanisms to reflect the new PFL caps and employee contribution rates as of January 1st. Employers in multiple jurisdictions who find the patchwork of leave laws frustrating can turn to us – we are on top of all the quirks and details of leave laws and can help you solve any dilemmas arriving from their many variations.