Minnesota workers will pay the same share of their wages for paid leave in 2027 as they do now. The state’s Department of Employment and Economic Development, known as DEED, announced on Friday, July 31, that the premium stays at 0.88% of covered wages, and that more than 75,000 Minnesotans have already taken leave this year.
The state has paid out more than $600 million to those workers on approved leave, according to DEED figures reported by FOX 9. The program began paying benefits on January 1, 2026.
The 2027 premium is not going up
The 0.88% rate applies to total covered wages, FOX 9 reported, and employers can collect up to half of it, 0.44%, from their employees. They are allowed to cover more of the cost themselves.
A summary from the benefits firm NFP breaks the full rate into 0.27% for family leave and 0.61% for medical leave. Small employers also keep an unchanged rate, 0.66% for 2027.
For a worker earning $1,000 a week in covered wages, an employer collecting the full 0.44% share would take $4.40 a week out of pay. The actual deduction depends on how much of the premium a given employer passes along, which is visible on a pay stub.
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Could a worker qualify, and what should be checked now?
For anyone who pays the premium, the useful step before January 1 is to look at a recent pay stub, see whether a paid leave deduction already appears, and ask the employer how much of the 0.88% it passes along. Workers who expect to need leave for a new baby, a serious health condition or a relative’s care can start with the state’s site for the eligibility rules before the need arises.
Who has used the program so far
The figures are for 2026 through the end of July: more than 75,000 Minnesotans using paid leave and more than $600 million going out in benefits. Neither number covers the months since, and DEED has not announced a newer total.
The program started with a $668 million benefit account carried from 2023 and is now funded entirely by premiums. DEED says premium collections are broadly in line with payments so far in 2026, and its actuarial analysis, which includes studies of other states, projects the program will stay at a sustainable level in 2027.
What paid leave covers, and what it pays
Minnesota Paid Leave provides up to 12 weeks of family leave or medical leave, with a combined maximum of 20 weeks in a year. Wage replacement is partial and is capped at the state’s average weekly wage, about $1,423.
That is the number to keep in mind for a household budget. Leave pay replaces a share of earnings, not all of them, so a worker on leave for several weeks usually takes in less than a normal paycheck.
Whether a particular worker qualifies depends on the program’s own rules, which the state publishes at pl.mn.gov. The 2027 announcement does not change who is covered.
What DEED says about the next year
DEED made the announcement on July 31, 2026, five months before the new rate takes effect on January 1, 2027, so payroll departments have time to leave their settings alone. Employers that split the cost with workers have nothing to renegotiate, and employers that cover more than half can keep doing so.
The agency’s message is stability: no increase for 2027, and a fund that collects roughly what it pays. The 2027 rate holds for a program that is less than a year old and still building a record of claims.
The open question is the one the 75,000 figure cannot answer. It counts workers who have already used the program, not how many of the state’s employees will need it next year, and DEED has not said how its projections change if claims grow faster than premiums.
What covers a household when leave pays only part of a salary?
Minnesota Paid Leave replaces part of a paycheck, capped at about $1,423 a week, for as many as 12 weeks of family or medical leave. A household that takes leave still has the same rent, groceries and utility bills.
The Benefits Checklist does not cover Minnesota Paid Leave. It covers 11 benefit programs, such as SNAP food benefits at 60+ and heating help, with the 2026 income limits and a 50-state phone directory, and a printable tracker comes with the download.
Get the Benefits Checklist for the weeks when leave pay falls short →
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This article was produced with AI assistance and edited for accuracy against the sources linked above.
