Governor Kathy Hochul announced a series of changes taking effect on January 1, 2025, that will increase benefits for workers while reducing costs for businesses across New York. These measures include higher workers’ compensation and Paid Family Leave benefits, along with a significant reduction in the workers’ compensation assessment rate for employers.
Under the changes, the minimum weekly benefit for workers’ compensation will rise to $325, up from $275 in 2024. This increase stems from legislation signed by Governor Hochul in 2023 and marks the first in a series of adjustments to ensure benefits keep pace with the New York State Average Weekly Wage (NYSAWW). Starting July 1, 2026, these benefits will be indexed to the NYSAWW, preventing stagnation and providing greater wage replacement for injured workers.
Paid Family Leave benefits are also set to increase. Eligible employees will be able to receive up to $1,177.32 per week, with a total possible benefit of $14,127.84 over 12 weeks. These figures reflect an increase tied to the NYSAWW for 2025, which stands at $1,757.19. To fund this program, employees will contribute 0.388% of their gross wages, with a maximum annual contribution of $354.53.
For employers, the workers’ compensation assessment rate will drop to 7.1% of the standard premium or premium equivalent, a 22% decrease from 2024. This reduction is expected to save businesses across the state approximately $191 million. The decline reflects ongoing efforts by the Workers’ Compensation Board to streamline costs and manage liabilities effectively.
Governor Hochul emphasized the importance of balancing worker protections with affordability for employers. These updates, she said, represent a step forward in creating a safer, more sustainable, and economically sound environment for New Yorkers.
The Paid Family Leave program, introduced in 2018, continues to provide up to 12 weeks of job-protected leave for eligible workers to bond with a new child, care for a seriously ill family member, or assist relatives deployed on active military service. Meanwhile, the state’s workers’ compensation system remains a critical safety net, offering financial and medical support for job-related injuries or illnesses.
State officials, including New York State Workers’ Compensation Board Chair Clarissa Rodriguez, lauded the updates as milestones that benefit both workers and businesses. Business leaders and labor advocates echoed this sentiment, highlighting the improvements as a testament to effective governance and forward-thinking policy.
These changes come amid broader efforts to enhance the state’s economic landscape, ensuring that workers and employers alike are positioned for success in the new year.
