We have an update! The EDD has released the final numbers for 2023 for the State Disability Insurance (SDI) program, which includes Paid Family Leave (PFL). Here are the numbers:
- Contribution rate: 0.9% (decreased from 1.1%)
- Taxable wage ceiling: $153,164 (increased from $145,600)
- Employee maximum contribution: $1,378.48 (decreased from $1,601.60)
- Maximum weekly benefit: $1,620 (increased from $1,540)
- Voluntary Plan Assessment Rate: 0.00126% (decreased from 0.00154%)
California permits employers to opt out of SDI and establish a private plan for Voluntary Disability and Paid Family Leave Insurance (known as a “Voluntary Plan”), provided certain requirements are met. Among these requirements are that the Voluntary Plan’s cost to employees be no more than the cost for SDI, and that benefits paid by the plan are at least equal to what the EDD would pay.
If you think a Voluntary Plan would be a good option for your company and employees, or would like to find out more information, please reach out to your Account Manager. The Larkin Company will reach out to our current Voluntary Plan clients to assist them in planning for 2023.