As of 2025, California’s Paid Family Leave (PFL) and State Disability Insurance (SDI) benefit rates have increased from 60% to 70% of an employee’s weekly wages. While this is great news for employees, it requires employers to make important updates.
What Employers Must Do
- Update Employer Policies & Handbooks
- Any parental leave policies referencing benefit rates need to be revised to reflect the increase.
- Adjust Employer Top-Up Contributions
- If your company previously provided a 40% top-up (to bring employees to 100% pay), you now only need to provide a 30% top-up.
- Communicate Changes to Employees
- Ensure HR teams and employees understand how the updated benefit rate affects their leave pay.
Employers who offer generous top-up policies can now reduce payroll expenses while still ensuring their employees receive full pay during leave.
