Big News: California’s Paid Parental Leave Benefits Are Going Up in January 2025!
Starting January 1, 2025, California’s paid family leave benefits are getting a boost! This change means parents will get more financial support when taking time off with their new little ones. Here’s what you need to know.
What’s Changing?
- Higher Pay While on Leave: Starting in January, low-income workers will receive up to 90% of their gross pay while on leave. Middle- and higher-income workers will receive up to 70%. This increase helps ease financial stress, making it more feasible to take parental leave.
- Increased Maximum Weekly Benefit: The maximum weekly benefit will increase to $1,681 starting January 1, offering additional financial support to those at higher earning levels.
- More Financial Flexibility: Although the maximum duration for family leave remains unchanged, higher rates provide greater financial flexibility. Whether you choose to take all your leave at once or spread it out, these changes make it easier to align your leave with your personal and family needs.
Why It Matters:
California has always been a leader when it comes to parental leave, and these changes give families more support during a time when they need it most. Studies show that when parents have the financial ability to take time off, it leads to better health and bonding for both parents and babies. This increase in benefits will help
more families enjoy that special time together without stressing about finances.
How to Get Ready for the Changes:
- Check If You’re Eligible: If you’re paying into California’s State Disability Insurance (SDI) program, you’re likely covered for paid family leave. Not sure? Check your paystub for SDI tax withholdings.
- Estimate Your Benefits: The EDD will update its benefits calculator before the new year, so make sure to check that out to see how much you could get with the new rates.
Final Thoughts
This change in paid parental leave benefits is a big win for California parents. Starting in 2025, you’ll have more support to take the time you need with your growing family without the financial stress.
We’re here to help you make the most of these new benefits. If you have questions, please sign up for our workshop "Maximizing Maternity Leave Benefits: Virtual" — we’d love to guide you through the process and help you secure your time off with your new little one.
Written by Shelly Yehuda, California Parental Leave Advisors - dated 11/8/24 [updated12/6/24]