The Washington State Employment Security Department has announced new Paid Family and Medical Leave (PFML) premium rates beginning Jan. 1, 2026. The total premium rate will rise to 1.13 percent of each employee’s gross wages, up from 0.92 percent in 2025. Employers will contribute 28.57 percent of the total premium, while employees will pay 71.43 percent.
For employers, the 23% rate increase from 2025 to 2026 represents an additional $608 in annual PFML taxes for every $1 million in payroll. An employer with a $17 million payroll would therefore pay approximately $10,000 more per year. For workers earning the 2024 average wage of $95,000, the increase amounts to roughly $56 more in annual PFML premiums.
Businesses with fewer than 50 employees are not required to pay the employer portion but must continue collecting employee premiums or pay them on behalf of workers. Employers should begin withholding the updated rate from wages paid on or after Jan. 1, 2026, and note that the Social Security wage cap will increase to $184,500. First-quarter premiums using the new rate will be due by the end of April 2026.
The Employment Security Department will release updated employer resources by the end of November, including new guides, posters, and paystub inserts. Additional program updates include expanded job protections, clarified health care benefit requirements, and changes to small business assistance grants.
More details and resources can be found at paidleave.wa.gov/employer-roles-responsibilities.
