Employment Development Department (EDD)
The EDD has released the final numbers for 2026 for the State Disability Insurance (SDI) program, which includes Paid Family Leave (PFL).
- Contribution rate: 1.3% (increased from 1.2%)
- Voluntary Plan Assessment Rate of Taxable Wages: 0.182% (increased from 0.168%). The assessment rate is 14% of the SDI contribution rate multiplied by taxable wages.
The State Average Weekly Wage (SAWW) for 2026 has yet to be released. The SAWW is used to determine the maximum weekly benefit amount each year and is currently forecasted to increase to $1,710 for 2026. 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 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 Larkin Client Success Manager or get in touch with us at sales@thelarkincompany.com.
