NYS: Increased benefits for employees and lower costs for businesses in 2025

New York state paid family leave maximum weekly benefit increasing by more than $300; Workers’ compensation minimum weekly benefit increasing due to legislation signed by Hochul

Submitted by the Office of Gov. Kathy Hochul 

Gov. Kathy Hochul announced the new year will bring increased workers’ compensation and paid family leave benefits for workers, while also delivering savings for businesses. Effective Jan. 1, the minimum weekly benefit for workers’ compensation and the maximum weekly benefit for paid family leave have both gone up, while the workers’ compensation assessment rate for employers dropped.

“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,” 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.”

New York State Workers’ Compensation Board Chair Clarissa Rodriguez said, “The board is honored to join the governor in celebrating a new year that will start with more money for workers and increased savings for businesses. Serving the people of New York is a privilege, and we are proud to have a leader who wants to make this state safer, more affordable, and better for families.”

New York State AFL-CIO President Mario Cilento said, “I applaud Gov. Hochul for prioritizing the needs of workers by implementing increases in the minimum workers' compensation benefit, and the maximum paid family leave benefit. Thanks to historic legislation passed by the Legislature and enacted by Gov. Hochul last year, the minimum workers' compensation benefit will be increased and indexed so wage replacement benefits for injured workers will never stagnate. Increasing these benefits and lowering assessments shows that our workers' compensation system can better protect workers while reducing employer costs.”

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.

As of Jan. 1, 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% of their average weekly wage, up to a cap of 67% 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% 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% 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.

As of Jan. 1, the minimum workers’ compensation weekly benefit has increased to $325 per week, in accordance with legislation signed into law by Hochul in September 2023. That’s up from $275 per week in 2024. Prior to Jan. 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 Jan. 1, the workers’ compensation assessment rate for employers is 7.1% of the standard premium or premium equivalent – a 22% 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% reflects an over 43% decrease since 2019, when the assessment rate was 12.6%.

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.