MINNEAPOLIMEDIA NEWS | Minnesota Holds Paid Leave Premium Rate Steady at 0.88 Percent for 2027

ST. PAUL, MN (August 1, 2026). Minnesota’s Paid Leave premium rate will remain at 0.88 percent of covered wages in 2027, state officials announced Friday.

The decision means workers and employers participating in the state program will not face a premium-rate increase next year.

How the Premium Is Divided

The total rate includes 0.61 percent for medical leave and 0.27 percent for family leave.

Employers generally must pay at least half of the required premium. They may choose to cover more, but the amount deducted from an employee’s wages generally cannot exceed half of the total premium.

Different provisions may apply to qualifying small employers or organizations using approved private plans.

Minnesota Paid Leave provides partial wage replacement and job protections for eligible workers who need time away from employment for qualifying medical, family or safety reasons.

Those reasons can include recovering from a serious illness, bonding with a new child, caring for a family member or responding to domestic abuse, sexual assault or stalking.

Rate Reviewed Annually

Minnesota reviews the premium rate annually using information about program participation, benefit payments and the financial condition of the Paid Leave fund.

Holding the rate at 0.88 percent offers employers greater predictability while avoiding a larger deduction from workers’ paychecks.

The state’s announcement applies to the premium rate itself. Individual benefit amounts and contributions can still vary based on wages, employer size and other program rules.

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