Massachusetts paid family and medical leave benefits will rise on Jan. 1, 2027, when the maximum weekly payment climbs to $1,284.61 from $1,230.39, according to the state Department of Family and Medical Leave (DFML). The total payroll contribution stays at 0.88% of eligible wages, but the split between employers and workers changes. This guide explains what Boston-area workers and employers need to know before the new year.
Massachusetts PFML 2027 maximum weekly benefit
DFML ties the cap to the state average weekly wage, which it sets each calendar year. Its benefit calculation guidance lists the 2027 state average weekly wage at $2,007.20, up from $1,922.48 in 2026. The maximum benefit is 64% of that figure.
A worker’s own payment depends on their individual average weekly wage, which DFML calculates from the two highest-earning quarters in the last four completed quarters. The formula has two tiers:
- Earnings up to half the state average weekly wage ($1,003.60 in 2027) are replaced at 80%.
- Earnings above that line are replaced at 50%.
- The total cannot exceed the $1,284.61 cap.
Applying that formula to 2027 figures, a worker averaging $800 a week would receive about $640 a week. A worker averaging $1,500 would receive about $1,051. Anyone averaging roughly $1,967 or more would hit the cap. These are TBR estimates using DFML’s published formula; DFML’s own determination controls, and other paid leave can reduce the amount.
How much leave workers can take
Under the program, an eligible employee can take up to 12 weeks of family leave, up to 26 weeks of family leave to care for an injured service member, and up to 20 weeks of medical leave. The combined limit is 26 weeks in a single benefit year.
A benefit year starts the Sunday before the first day of leave and lasts 52 weeks. The weekly rate set at the start of that year stays the same for the whole year, even across several applications. That matters for anyone starting leave in late 2026: DFML says leave that spans two benefit years is split into two parts, each with its own rate and its own 7-day waiting period.
At the 2027 cap, 12 weeks of family leave would total about $15,415 before the waiting period, by TBR’s calculation.
2027 contribution rates: what changes on paychecks
The DFML contribution rates page, last updated Oct. 1, 2026, says Chapter 101 of the Acts of 2026 shifts the required employer share from the medical leave contribution to the family leave contribution, effective Jan. 1, 2027. The state says the change is meant to “mitigate the impact of recent IRS guidance on the tax treatment of Massachusetts PFML benefits.”
For employers with 25 or more covered workers, the 0.88% total breaks down this way:
- 2026: family leave is 0.18%, all of which may be withheld from workers. Medical leave is 0.70%, with up to 0.28% withheld from workers and at least 0.42% paid by the employer.
- 2027: family leave is 0.70%, with up to 0.28% withheld from workers and at least 0.42% paid by the employer. Medical leave is 0.18%, all of which may be withheld from workers.
The maximum worker deduction stays at 0.46% of eligible wages in both years. Employers with fewer than 25 covered individuals still remit an effective 0.46% because they owe no employer share. Any employer may choose to pay more than the minimum, and individual contributions are capped at the Social Security taxable maximum.
Why the tax question matters
A Holland & Knight client alert summarizing the change says the IRS guidance treats family leave benefits as generally taxable income, and that the part of medical leave benefits tied to employer contributions may be treated as taxable wages. Moving the employer money to family leave is expected to avoid new employment tax obligations for employers, the firm wrote. Workers with questions about their own tax situation should consult a tax professional, as DFML itself advises for private-plan benefits.
What employers should do before Jan. 1
- Update payroll so the new split applies to wages earned on or after Jan. 1, 2027.
- Notify employees of the change; the state lists a process for reporting an employer’s failure to give PFML notice.
- Employers with an approved private or self-insured plan do not send contributions on those benefits. Holland & Knight notes that exemptions are now requested and renewed through DFML’s employer portal rather than MassTaxConnect.
DFML answers worker questions at (833) 344-7365, Monday through Friday, 8 a.m. to 4:30 p.m. Contribution questions go to the Department of Revenue at (617) 466-3950, weekdays 9 a.m. to 4 p.m.
The bigger picture for Boston workers
Massachusetts’ seasonally adjusted unemployment rate was 4.3% in September 2026, compared with 4.2% nationally, according to Bureau of Labor Statistics data published through FRED. Workers who lose a job rather than take leave fall under a separate program; see TBR’s guide to Massachusetts unemployment benefits. For how PFML fits with other state payroll and income taxes, see Massachusetts taxes explained, and for household costs, how affordable Massachusetts is in 2026.
Sources
- Mass.gov (DFML): PFML employer contribution rates and calculator
- Mass.gov (DFML): Guidance on benefit calculations and application ownership
- FRED, Federal Reserve Bank of St. Louis: Unemployment Rate in Massachusetts (BLS data)
- U.S. Bureau of Labor Statistics: Local Area Unemployment Statistics
Additional sources
- Holland & Knight: Massachusetts Announces PFML Updates for 2027
- Mass.gov: Department of Family and Medical Leave
- FRED: U.S. Unemployment Rate (BLS data)
Photo: Massachusetts State House, Boston, by Ajay Suresh, Wikimedia Commons, CC BY 2.0.
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