New York Governor Kathy Hochul announced increases in workers’ compensation and Paid Family Leave benefits. As of Jan.1, 2025, workers can receive up to $14,127.84 in total benefits, a $300 increase from 2024.
Weekly benefits will also increase to 67% of an employee’s average weekly wage, capped at $1,177.32 per week, based on the updated state average weekly wage of $1,757.19, according to a press release.
Employees eligible for up to 12 weeks of job-protected Paid Family Leave will contribute 0.388% of their gross wages to fund the program, with a maximum annual contribution of $354.53.
“Hardworking New Yorkers shouldn’t have to worry about how they’ll buy food or pay rent when they need time off to care for a new child or family member with a serious health condition, or get injured on the job. Likewise, business owners who have their own bills to pay and families to support also need affordable solutions,” Hochul said.
Workers injured on the job will also see increased financial support of $325, up from $275 in 2024. These changes follow legislation signed by Hochul in September 2023, marking a significant increase from the $150 minimum benefit that had been in place for more than a decade prior to 2024.
Starting July 2026, the minimum benefit will be indexed to the state average weekly wage to ensure ongoing equity for workers.
Employers will benefit from a 22% reduction in the workers’ compensation assessment rate, which will drop to 7.1% of the standard premium in 2025. This change is expected to save New York businesses an estimated $191 million.
The rate has steadily decreased since 2019, when it stood at 12.6%.
New York State AFL-CIO President Mario Cilento praised Hochul for prioritizing workers' needs.
"Thanks to historic legislation passed by the Legislature and enacted by Governor Hochul last year, the minimum workers' compensation benefit will be increased and indexed so wage replacement benefits for injured workers will never stagnate," he said. "Increasing these benefits and lowering assessments shows that our workers' compensation system can better protect workers while reducing employer costs.”
