Starting January 1, 2025, California has implemented a significant increase in Paid Family Leave and Disability Insurance benefits. These historic changes allow workers who earn less than $63,000 per year to receive up to 90% of their regular wages, while those with higher incomes will receive 70% of their wages.
This measure, driven by Senate Bill 951 (SB 951), is not retroactive, meaning that applications submitted in 2024 will continue to receive the previous percentages, ranging from 60% to 70% of weekly wages.
What do these changes mean for disability beneficiaries?
With the new increase in benefits, millions of California workers will be able to afford to take time off to deal with illness, recover from injury, or care for a seriously ill family member without worrying about their financial stability. Additionally, the benefits will also cover time for:
- Bonding with a new child.
- Supporting family members during an overseas military deployment.
- Recovery after pregnancy or childbirth.
Key details of the benefits
- Paid Family Leave: Workers are eligible for up to 8 weeks of leave, with 4 additional weeks before birth for expectant mothers.
- Disability Insurance: Provides up to 52 weeks of benefits for workers who cannot perform their job due to a medical condition.
- Average payments: In 2024, workers received an average of more than $870 per week for Family Leave and $780 per week for Disability.
These programs benefit more than 18 million workers in California and are funded through payroll deductions.
Impact on workers
The increase in benefits allows low- and middle-income workers to prioritize their health and well-being, as well as the care of their families, without facing severe financial hardships. This improvement is especially significant for those who previously could not afford a drastic reduction in their income when taking leave.
Additional information and transition
The transition to the new benefits has been accompanied by a guide published by the California Employment Development Department (EDD), which includes answers to frequently asked questions about the changes. For those considering applying in 2025, it is important to review this information to fully understand the new percentages and their implications.
Expanded benefits: an investment in Californians
With this change, California reaffirms its commitment to the well-being of its workers, making the state more accessible and equitable for all. By ensuring that workers can care for themselves and their loved ones without sacrificing their financial stability, a stronger and healthier workforce is fostered.
These benefits are another example of the state’s leadership in promoting worker support measures, strengthening both the economy and the social fabric of California.
