Yes — the Minnesota Paid Leave premium rate for 2027 remains unchanged at 0.88% of covered wages (the same as 2026).** Small employers pay a reduced rate of 0.66%.
This was officially announced by the Minnesota Department of Employment and Economic Development (DEED) / Minnesota Paid Leave on July 31, 2026 (the annual deadline under the law for setting the following year’s rate).
Key details
- Standard rate: 0.88% of covered wages (covers Family Leave at 0.27% + Medical Leave at 0.61%).
- Employer/employee split: Employers must pay at least half (0.44%) and may collect up to 0.44% from employees. Employers can choose to cover a larger share (or all) of the premium.
- Small employer rate: 0.66%. Qualifying small employers can still collect up to 0.44% from employees, so their net cost can be as low as 0.22%. (Eligibility is based on employing 30 or fewer workers in each quarter and meeting average wage limits relative to the statewide average.)
- Premiums apply only up to the Social Security (OASDI) wage base (around $185,000 for recent years).
- The rate is set annually by July 31 based on program experience and an independent actuarial analysis. The statutory maximum is 1.1%.
The program is now fully funded by these premiums (after initial startup funding). Early 2026 data showed strong utilization (tens of thousands of claims and hundreds of millions in benefits paid), with collections broadly aligning with costs so far; the actuarial projection supported holding the rate steady for 2027.
Official sources:
- Announcement: pl.mn.gov/news/paid-leave-premium-rate-unchanged-2027
- Premium details and calculator: pl.mn.gov/resources/calculators/premium-rate-and-contributions
- Small employer info and grants: Available on the Minnesota Paid Leave site under the small employers section.
Your summary matches the official release. Let me know if you need help estimating costs for a specific payroll, checking small-employer qualification, or anything else related.
