California
Employment Development Department (EDD)
The EDD has provided a partial update for 2025 for the State Disability Insurance (SDI) program, which includes Paid Family Leave (PFL).
- Contribution rate: 1.2% (increased from 1.1%)
- Voluntary Plan Assessment Rate of Taxable Wages: 0.168% (increased from 0.154%).
The State Average Weekly Wage (SAWW) for 2025 has yet to be released. The SAWW is used to determine the maximum weekly benefit amount for 2025 (currently forecasted to remain $1,620). We will send an update once this information is available.
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, the Voluntary Plan’s cost to employees cannot be more than the cost for SDI and that benefits paid by the plan must be 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 Client Success Manager.
