Washington Paid Leave Premiums to Rise to 1.2 Percent
State workers and employers will see higher payroll tax deductions starting January 1 to fund the rising cost of leave benefits.
Updated on Oct. 27, 2026 in Employment
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The Washington Employment Security Department will increase the state's Paid Family and Medical Leave premium rate to 1.2 percent starting January 1, 2027. This annual adjustment aims to sustain the program, which paid out over $1.8 billion in benefits during the first nine months of 2026.
Why it matters
The rate hike reflects the ongoing costs of a program that supports hundreds of thousands of workers, with the department adjusting premiums annually based on usage and revenue. For households, this change alters the payroll deduction amount required to maintain access to benefits that cover up to 90 percent of weekly wages.
The 2027 premium rate climbs to 1.2 percent, up from 1.13 percent in 2026 and significantly higher than the 0.40 percent rate seen when the program began in 2019. With 377,000 applicants projected for 2027, the department must balance rising benefit demand against these collection rates.
The players
Washington Employment Security Department
The state agency responsible for managing payroll-funded insurance benefits and determining annual contribution rates for residents.
The details
The state's premium is split between workers, who cover 70.7 percent of the total, and employers, who pay 29.3 percent. The Employment Security Department recalculates this rate every October to ensure the program remains funded, as benefit payouts reached $1.8 billion through the first three quarters of 2026 alone. This funding structure supports workers claiming up to 90 percent of their average weekly wages, capped at a maximum benefit of $1,647.
Timeline
The program began in 2019 with an initial premium rate of 0.40 percent.
During 2024, 46 percent of all paid-leave recipients were repeat users of the system.
Legislators introduced SB 5292 in 2025 to address program funding.
More than 221,000 individuals claimed benefits during the first nine months of 2026.
The increased 1.2 percent premium rate takes effect on January 1, 2027.
Money Landscape
The 2027 rate hike highlights the growing financial scale of the Washington Paid Family and Medical Leave Act since its 2019 inception. It marks a departure from the lower early-program costs as more residents utilize the system and the state adjusts revenue to meet rising benefit volume.
Employees should prepare for a slight increase in payroll tax deductions beginning in January as the worker-funded portion of the premium rises. If you anticipate needing leave in the coming year, review your employer’s specific documentation to understand how these updated rates may interact with your benefit eligibility.
The takeaway
The 1.2 percent premium rate is designed to keep the state's leave insurance solvent amid high usage projections for 2027. Review your pay stub in early January to see the precise impact on your take-home pay, and contact a qualified financial professional if you have questions regarding your budget planning.
Further reading
For more on state-level labor benefits, visit the Employment section.
Source note: This article includes information reported by Big Country News.
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