Governor Kathy Hochul today announced that the new year will bring increased workers’ compensation and Paid Family Leave benefits for workers, while also delivering savings for businesses. Effective January 1, 2025, the minimum weekly benefit for workers’ compensation and the maximum weekly benefit for Paid Family Leave will both go up, while the workers’ compensation assessment rate for employers drops.
“Hardworking New Yorkers shouldn’t have to worry about how they’ll buy food or pay rent when they need time off to care for a new child or family member with a serious health condition, or get injured on the job. Likewise, business owners who have their own bills to pay and families to support also need affordable solutions,” Governor Hochul said. “I’m proud that New York State is finding ways to put money back into the pockets of workers and those who employ them so both the economy and the people can thrive.”
Paid Family Leave
NYS Paid Family Leave provides eligible employees with up to 12 weeks of job-protected, paid time off to bond with a new child, care for a family member with a serious health condition, or to assist loved ones when a family member is deployed abroad on active military service.
Starting January 1, 2025, New Yorkers taking Paid Family Leave may receive up to $14,127.84 in total benefits – an increase of over $300 from 2024. Employees taking Paid Family Leave receive 67 percent of their average weekly wage, up to a cap of 67 percent of the current New York State Average Weekly Wage (NYSAWW), which is $1,757.19 for 2025. This means the maximum weekly benefit will be $1,177.32, and the total possible benefit to an employee is $14,127.84.
Employees will contribute 0.388 percent of their gross wages per pay period to pay for Paid Family Leave in 2025, with a maximum annual contribution of $354.53 (0.388 percent of the NYSAWW). Employees earning less than the NYSAWW will contribute less than the annual cap of $354.53, consistent with their actual wages.
Workers’ Compensation
The NYS workers’ compensation system provides critical financial and medical benefits to workers who are injured or become ill as a result of their jobs, while protecting employers from costly lawsuits. Employers pay an annual assessment to the operating system.
Starting January 1, 2025, the minimum workers’ compensation weekly benefit will increase to $325 per week, in accordance with legislation signed into law by Governor Hochul in September 2023. That’s up from $275 per week in 2024. Prior to January 1, 2024, the minimum weekly benefit had been $150 per week for more than a decade.
On July 1, 2026, the minimum weekly benefit will be indexed to the NYSAWW. The institution of annual increases in the minimum weekly benefit, and eventual indexing to the NYSAWW, will ensure the minimum weekly benefit is more equitable to injured workers going forward.
Savings for Businesses
Additionally, as of January 1, 2025, the workers’ compensation assessment rate for employers will be 7.1 percent of the standard premium or premium equivalent – a 22 percent decrease from 2024 – which is expected to save New York State businesses approximately $191 million.
The employer assessment rates are determined by the NYS Workers’ Compensation Board’s need and budgeted statewide premium. The rate is calculated by dividing the Board’s total estimated annual expenses by a base of total estimated statewide premium. Insurers are required to apply the assessment rate to their premium or premium equivalent.
The assessment rate has been steadily declining in recent years, largely due to prudent management in accelerating the runoff of special workers’ compensation liabilities – known as special funds – which are funded by the assessments. The 2025 rate of 7.1 percent reflects an over 43 percent decrease since 2019, when the assessment rate was 12.6 percent.
More Information
Complete details on New York State Paid Family Leave are available at PaidFamilyLeave.ny.gov. There is also a special page with updates for 2025 that includes benefit and deduction calculators, answers to frequently asked questions, and other resources.
For more information regarding workers’ compensation, including benefits and the 2025 assessment rate, visit the NYS Workers’ Compensation Board’s website at wcb.ny.gov.
