California Increases Paid Family Leave and Disability Insurance Benefits in 2025
Increased Benefits:
California workers will now receive higher benefit amounts when they qualify for paid family leave or disability.
Beginning on January 1, 2025, California began paying significantly higher paid family leave benefits and higher disability benefits to California families. Over 18 million workers pay into the California State Disability Insurance program, meaning the workers automatically pay into these insurance plans through their payroll contributions. These insurance plans are meant to be a form of replacement income for these workers when they are forced to take time off work during pregnancy, childbirth, after birth to bond with children, serious illness or injury, or to care for family members.
Senate Bill 951 was signed into law and went into effect earlier this month. This bill increased the paid family leave benefits and disability benefits from 60-70% of weekly wages in 2024 to 70-90% of weekly wages in 2025. The State Disability Insurance program allows workers to take up to 52 weeks in paid leave when they are suffering from a temporary disability, illness, or even pregnancy. In addition, the Paid Family Leave program allows workers to take paid leave for up to 8 weeks to care for their seriously ill family member or to bond with a new child. These 8 weeks in leave do not have to be taken consecutively. This new law (Senate Bill 951) aims to make it financially easier for families to take time off work to care for themselves, a new child, or their families.
The increased benefits for 2025 range from $50 a week to a maximum of $1,681 a week. The new increased benefits are calculated as follows:
Not eligible for any benefits if annual income is up to $1,199.96 and highest 3-month earnings is less than $300.
Eligible for $50 weekly benefit if annual income is $1,200 to $2,889.96 and highest 3-month earnings is $300 to $722.49.
Eligible for 90% of weekly wages if annual income is $2,890 to $62,025.60 and highest 3-month earnings is $722.50 to $15,506.40.
Eligible for $1,074 per week if annual income is $62,025.64 to $79,747.20 and highest 3-month earnings is $15,506.41 to $19,936.80.
Eligible for 70% of weekly wages (capped at a maximum of $1,681) if annual income is more than $79,747.20 and highest 3-month earnings is $19,936.81 or more.
All benefits are calculated based on when the claim began. If a claim began in 2024, the rates (unfortunately) will based on the 2024 rates of 60-70% of weekly wages. If a claim began in 2025, the rates will be based on the new rates listed above.
It is also important to remember, for both employers and employees, that the State Disability Insurance and the Paid Family Leave are both meant to be income replacements in the event of a major illness, injury, pregnancy, etc. These insurance funds are not meant to ensure the employee is reinstated in his or her position after taking such leave and receiving these benefits. Instead, the employee must qualify under the Pregnancy Disability Leave or the California Family Rights Act to ensure he or she can be reinstated back into his or her position upon returning from extended leave.