Washington Paid Leave Premiums to Rise to 1.2% in 2027
State employers must prepare to adjust payroll systems to accommodate the increased premium rate for the upcoming year.
Updated on Oct. 16, 2026 in Employment
Live Poll
Do you support the current rate of mandatory payroll deductions for paid family leave in Washington?
Washington state is set to increase its paid family and medical leave premium rate to 1.2% starting in 2027. This adjustment impacts all state employers and employees who contribute to the mandatory leave program.
Why it matters
The annual adjustment reflects a shift in premium rates based on the previous year's contributions and benefits paid. Employers must prepare to adjust payroll withholdings to account for the new rate, which currently sits at 1.13%.
The new 1.2% premium rate replaces the current 1.13% figure, covering 220,000 claimants who received $1.8 billion in benefits through September 2026. Employers are responsible for 29% of this total premium, while employees contribute 71%.
The players
Washington State Employment Security Department
The state agency responsible for the administration and oversight of Washington's unemployment and paid leave benefit programs.
The details
The premium rate is updated annually by the Washington State Employment Security Department to balance the program's contributions against benefit payouts. Businesses must update their payroll systems to reflect the employer-paid 29% portion and ensure accurate withholding of the employee-paid 71% share before the 2027 effective date.
Timeline
Through September 2026: 220,000 people claimed $1.8 billion in benefits.
October 16, 2026: The Department announced the 2027 premium rate.
2027: The new 1.2% premium rate takes effect.
Market Landscape
The upcoming rate adjustment is a continuation of the annual review cycle mandated by the Washington Paid Family and Medical Leave program. This process ensures the state fund remains solvent by aligning revenue collection with historical benefit utilization.
Business owners in Washington should update their payroll software to accommodate the 1.2% premium rate effective in 2027. Coordinate with your accounting team or payroll provider to ensure the 29% employer-paid portion is correctly budgeted for the upcoming year.
The takeaway
The mandatory increase requires immediate attention to payroll compliance to ensure adequate coverage of employer contributions. Monitor your quarterly wage reporting closely to track how the higher premium affects your total labor cost margins.
Further reading
For more on state-mandated payroll requirements, visit Washington Employment.
Source note: This article includes information reported by My Bellingham Now -.
Live Poll
Do you support the current rate of mandatory payroll deductions for paid family leave in Washington?
