The Maryland Department of Labor announced today the initial contribution rate for the new Family and Medical Leave Insurance State Plan. The rate will be 0.90% of covered wages, and will be equally divided between employees and employers with 15 or more workers.

The contribution rate is the rate applicable to employers and self-employed individuals choosing coverage under the State Plan. Employers will need to make a plan selection for Family and Medical Leave Insurance coverage. Employers may choose coverage under the State Plan, under an approved commercially insured plan sold by insurers in the state, or under an approved self-insured plan.

Employers participating in the State Plan will begin making contributions on wages paid to employees starting October 1, 2024. The total rate of 0.9% of covered wages up to the Social Security wage base (currently $160,200) will be evenly split between employees and employers, who will each contribute 0.45%. Small businesses with 14 or fewer employees are exempt from the employer’s portion of the contributions. Employees of those small businesses will continue to contribute their 0.45% share.

Starting in 2026, Maryland workers will receive job protection and up to $1000 a week for up to 12 weeks to take time away from work to care for themselves or a loved one, to bond with a child, and for certain military-related events. The 0.90% contribution rate will continue through at least June 30, 2026.

When benefits start in January 2026, either the employer’s private plan or the State Plan will provide partial wage replacement to the worker while they are on leave. (Maryland Department of Labor Announcement, September 29, 2023.)

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