Paid Leave makes time for some of life's most important moments by providing payments and job protections. Leave can be taken for one's own medical needs, to bond with a new child, care for a family member, or for certain military or personal safety needs. Like unemployment insurance, Paid Leave is funded by premiums paid by employers and employees.
When Paid Leave begins for Minnesotans in 2026, the premium rate will be 0.88 percent. The premium rate is a percentage of an employee's wages that will be collected by the state from employers. The premiums will be split between employees and their employers. While every state with paid leave is different, Minnesota's premium rate ranks 4th lowest out of 14 state programs for cost to employers and employees.
For large employers who already offered private paid leave plans, the move to a state plan will often result in cost savings. And for small employers, Minnesota Paid Leave will make a critical employee benefit affordable when it might not otherwise be.
The calculator below can be used to estimate costs for Minnesota employers and individuals under Paid Leave. The tool gives an estimate of the premiums that will be first due in April 2026, after the program launches in January 2026.
NOTE: This calculator provides an unofficial estimate of premium amounts. Actual premiums are based on exact wage detail reported to Minnesota Paid Leave and not on estimates generated from this calculator.
Premium rates are set to ensure the Paid Leave program is able to cover the cost of benefits and can best serve its users. The Paid Leave premium rate of 0.88 percent for 2026 covers the premium for medical leave (0.61 percent), for your own medical care, and family leave (0.27 percent), to care for others.
| 2026 Contribution Rates for Minnesota Paid Leave | |
|---|---|
| Total Premium Rate | 0.88% |
| Max. Employee Contribution Rate | 0.44% |
| Max. Employee Weekly Contribution | $14.90 |
| Max. Weekly Benefit | $1,372 |
| Min. Employer Contribution Rate | 0.44% |
| Min. Small Employer Contribution Rate | 0.22% |
Employers must pay at least 50 percent of the total premium and can deduct the remainder from employee pay. Employers may also choose to pay up to 100 percent of the premium for their employees. Small employers pay a reduced premium rate. The maximum contribution from employees in this case is the same as an employee of a large employer.
After the first year in 2026, the premium rate will be set annually by July 31 for the following year. The premium will be based on how the program is running, and best budgeting practices to keep the fund at a healthy level. The rate will be informed by an independent actuarial study. The premium rate cannot be more than 1.2 percent as set in Minnesota's Paid Leave law.
The first premium payments for Paid Leave are due on April 30, 2026. The first premiums will be based on wage detail reported between January 1, 2026, and March 31, 2026. Employers will submit quarterly Paid Leave premium payments through their UI/Paid Leave account. This is the same account employers use to submit wage detail reports. Employers may deduct the employee portion of Paid Leave premiums from paychecks starting January 1, 2026, when benefits become available.
The terms and definitions below give additional information for the premium calculator on this page.
Employee count: The employee count is the largest number of Minnesota employees reported by an employer on a single wage detail report during the four-quarter period that ended September 30 of the prior year. That means, when the program launches in 2026, this will be the highest number of Minnesota employees reported in a single quarter between October 1, 2024 and September 30, 2025. If this count is 30 or fewer employees, the employer may qualify for a reduced small employer premium rate. Independent contractors and self-employed individuals are not included in this count.
Minnesota employees: People are covered by Paid Leave if they work 50 percent or more of the year in Minnesota. For people who do not work 50 percent or more of the year in any one state – for example, someone who splits their time equally between three states – they are covered by Paid Leave if they live in Minnesota.
Employee payroll: Premium payment amounts due will be based on the payroll reported each quarter by employers through wage detail reports. The calculator asks for payroll from the past year to provide an estimate of premium amounts by week, month, quarter, or year.
Old-Age, Survivors and Disability Insurance (OASDI) limit: Premiums are only due on wages up to the Old-Age, Survivors and Disability Insurance (OASDI) limit set by the United States Social Security Administration.
If a covered individual's wages are above the OASDI limit, the calculator will provide an overestimate for premiums due. Substituting the OASDI limit in place of any wages above the cap may give a more accurate estimate of premiums due, but may incorrectly apply the reduced small employer rate. This is because eligibility for the small employer rate is based on wages reported, which are not limited by the OASDI limit. The premium calculator will be updated to provide additional clarity for this and other unique situations in the coming months.
Small employer premiums: Employers who qualify for the reduced small employee rate are responsible for half of the standard employer contribution. The maximum contribution from employees in this case is the same as an employee of a large employer. Like other employers, small employers may choose to cover any amount of employees' share of the premium.
