Maryland's FAMLI payroll deductions start in 2027 as paid leave takes shape
Maryland will begin collecting payroll contributions for the Family and Medical Leave Insurance program (FAMLI) on Jan. 1, 2027, at a 0.9% wage rate (employer-employee split for employers with 15+ workers; employees pay up to 0.45%). For a $75,000 salary, the annual employee contribution would be about $337.50. Benefits—up to 12 weeks of paid, job-protected leave for childbirth, a serious health condition, or caring for a family member—aren’t available until Jan. 1, 2028, funded by a dedicated insurance trust. Supporters say paid leave boosts productivity and competitiveness, while critics warn of added payroll costs for workers; Gov. Wes Moore notes there are no new taxes or fees in the budget, though FAMLI is separate from it.