Washington to Increase Paid Leave Premiums in 2027

The state's paid family and medical leave premium rate will rise to 1.2% starting in 2027.

Updated on Oct. 16, 2026 in Employment

Washington to Increase Paid Leave Premiums in 2027

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The Washington State Employment Security Department announced that the paid family and medical leave premium rate will increase to 1.2% for 2027. This marks an adjustment from the current rate of 1.13%.

Why it matters

The annual adjustment ensures that the state's paid leave program remains funded based on the volume of contributions and benefits paid during the previous year. This change directly affects the payroll contributions required from both employers and workers across Washington.

The new 1.2% premium rate is calculated to cover state program costs after $1.8 billion in benefits were claimed by 220,000 people through September 2026. Employees remain responsible for 71% of the premium, while employers cover the remaining 29%.

The players

Washington State Employment Security Department

This state agency is responsible for administering unemployment insurance and paid family and medical leave programs for residents of Washington.

The details

The rate adjustment is determined annually by comparing total contributions against the total value of benefits paid out by the state. The Employment Security Department officially announced the new figure on October 16, 2026.

Through September 2026: More than 220,000 people claimed $1.8 billion in benefits.
October 16, 2026: The state department announced the 2027 premium rate.
2027: The new 1.2% premium rate takes effect.

Macro View

The rate increase follows the established funding mechanism of the Washington Paid Family and Medical Leave program. This adjustment reflects the ongoing balancing of state-administered benefit programs against historical contribution cycles.

Most Washington workers will see a slight change in the payroll deduction amount for the state leave program beginning in 2027. Because employees pay 71% of the total premium, this increase will have a direct impact on the net take-home pay for covered individuals.

The takeaway

The rate increase serves as a reminder for Washington residents to review their payroll tax withholdings as state-mandated contributions evolve. Understanding these adjustments helps workers and businesses better forecast their annual financial obligations.