Community News
DEED Confirms Paid Leave Premium Rate at 0.88 Percent
Paid Leave at the Minnesota Department of Employment and Economic Development (DEED) confirmed on February 21, 2025 that when Paid Leave begins for Minnesotans in January 2026, the premium rate will be 0.88 percent. The agency also released a calculator to help Minnesotans estimate their costs. Like unemployment insurance, ongoing Paid Leave program expenses are funded by premiums paid by employers and individuals. The premium rate is a percentage of an employee's wages that will be paid by the employee and their employer to fund the program, split evenly between the employee and the employer. The 0.88% rate is based on recommendations from independent actuaries.
The new calculator tool will help Minnesota employers and individuals understand what their costs will be under Paid Leave. The tool gives an estimate of the premiums that will be first due in April 2026, after the program launches in January 2026. After the first year, the premium rate will be set annually. View the calculator tool at https://mn.gov/deed/paidleave/ employers/premiums
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