Paid Leave Confirms Premium Rate, Remains on Track for Launch in 2026

Submitted by MN DEED

Minnesota Paid Leave confirmed today that when Paid Leave begins in 2026, the premium rate will be 0.88 percent. The premium rate is a percentage of an employee's wages that will be paid by the employee and their employer to fund the program.

Paid Leave makes time for some of life’s most important moments by providing payments and job protections. Leave can be taken for one's own medical needs, to bond with a new child, care for a family member, or for certain military or personal safety needs.

While every state with paid leave is different, Minnesota’s premium rate ranks 4th lowest out of 14 state programs for cost to employers and employees.

For large employers who already offered private paid leave plans, the move to a state plan will often result in cost savings. And for small employers, Minnesota Paid Leave will make a critical employee benefit affordable when it might not otherwise be.

A new calculator tool will help employers and individuals estimate costs under Paid Leave. The tool gives an estimate of the premiums that will be first due in April 2026, after the program launches in January 2026.Paid Leave premium calculator

Small employers pay a reduced premium rate. The premium calculator page provides an estimate of the reduced premiums for small employers and an explanation of who is eligible for the rate and how it is applied.

The first premium payments for Paid Leave are due on April 30, 2026. The first premiums will be based on wage detail reported between January 1, 2026, and March 31, 2026. Employers may deduct the employee portion of Paid Leave premiums from paychecks starting January 1, 2026, when benefits become available.

After the first year in 2026, the premium rate will be set annually no later than July 31 for the following year. The premium will be based on how the program is running, and best budgeting practices to keep the fund at a healthy level. The premium rate cannot exceed the maximum rate set in state law.

For more information on Paid Leave premium rates and contributions, visit the Minnesota Paid Leave website and sign up for email updates from Paid Leave.