Maryland FAMLI Paycheck Deductions Start in January 2027, but Paid Leave Benefits Don’t Begin Until 2028
Maryland workers will start paying into the state’s new paid family and medical leave program, known as Maryland FAMLI, in January 2027, but they will not be able to collect benefits until a year later, according to the state’s Department of Labor.
The Family and Medical Leave Insurance (FAMLI) program lists two dates on its official website: “January 1, 2027: Contributions begin” and “January 1, 2028: Benefits become available.”
“Payroll deductions begin January 1, 2027, but benefits don’t start until January 1, 2028. This year allows the trust fund to grow before paying out claims,” the state says.
HOW MARYLAND FAMLI CONTRIBUTIONS WORK
The Maryland Department of Labor set the first contribution rate at 0.9% of wages up to the Social Security wage cap, split equally between employers and employees at 0.45% each, for wages paid from Jan. 1 through Dec. 31, 2027, according to the program’s website. Employers may withhold up to half of that from workers’ paychecks.
The state gives this example: a worker earning $1,000 per paycheck would pay up to $4.50 per paycheck.
Employers with fewer than 15 employees are only responsible for remitting 50% of the rate, which they may withhold from employee pay. Starting in November 2027, the department will announce each next year’s rate, and the total rate cannot exceed 1.2% of wages, the state says.
“All employees who work in Maryland must participate — you can’t opt out, even if you’re not planning to use the benefits,” the program’s employee page says. “Contributions are not refundable.”
Once benefits begin, eligible workers can take up to 12 weeks of job-protected paid leave a year, with benefits of up to $1,000 per week, according to the state.
‘IRRESPONSIBLY CRAFTED, RUSHED’
The program was created by the Time to Care Act, which the General Assembly passed in 2022 over the veto of then-Gov. Larry Hogan, a Republican. In his April 8, 2022, veto letter, Hogan called the bill “an irresponsibly crafted, rushed piece of legislation” and said it contained “no payroll deduction cap or cost–sharing formula.”
Benefits were originally set to begin in January 2025 before repeated delays, the Daily Caller News Foundation reported.
THE STATE’S DEFENSE AND THE GOP NOMINEE’S CRITICISM
The Maryland Department of Labor told the Daily Caller News Foundation that collecting contributions ahead of benefits keeps the program financially sound. “MD Labor takes seriously its responsibility to ensure FAMLI is financially sustainable and secure,” the department said. “All standalone state paid leave programs began with a seeded fund.”
“Employers and employees are setting aside money now, so it’s there when they need it the most,” the department said, according to the outlet. The department said the first quarterly contributions are due April 30, 2027.
Former state Del. Dan Cox, the Republican nominee for governor, told the outlet the deductions should be suspended. Asked whether building a reserve justified the gap, Cox said, “No, it does not.” He also said the program “should be an opt in. This should be a voluntary process, for those who wish to participate.”
The Daily Caller News Foundation reported that a legislative budget analysis listed $51.4 million in FAMLI administrative funding for fiscal 2026 and $70.1 million for fiscal 2027, and noted those are budgeted figures, not actual spending.
The outlet said Democratic Gov. Wes Moore’s office and the offices of top Democratic and Republican legislative leaders did not respond to requests for comment.
Sources: Maryland Department of Labor FAMLI program website; Gov. Larry Hogan’s April 8, 2022, veto letter (Maryland General Assembly); Daily Caller News Foundation (Oct. 18, 2026).
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