St. Paul, Minn. — The Minnesota Department of Employment and Economic Development (DEED) announced today that the premium rate for Minnesota Paid Leave will remain steady at 0.88% of covered wages in Minnesota for 2027 – the same as the current year.

Signed into law by Governor Walz in 2023, Minnesota's Paid Leave program reflects the administration's commitment to making our state the best place in the nation to live, work and raise a family. Paid Leave provides support for workers and families, making it possible for Minnesotans to be there for critical moments without putting their job or income at risk. More than 75,000 Minnesotans have taken Paid Leave in 2026 so far, totaling more than $600 million in payments.

"The first six months of Paid Leave show Minnesotans are excited about the program and will continue using and depending on it to support themselves and their families," said DEED Commissioner Matt Varilek. "We remain proud of the positive impact it's had so far for Minnesota workers and their families. We're keeping the premium rate at 0.88% for 2027 and we look forward to ensuring Paid Leave's long-term success as data from the first year continues to come in."

After the initial startup funding provided by the Paid Leave law in 2023, Paid Leave is now fully funded by premiums. The premiums are paid to the state by employers, split with employees. By law, employers can continue to collect up to 0.44% from employees in 2027, or employers can choose to cover more. Small employers pay a smaller share – as little as 0.22%.

"For my family, Paid Leave has created space for moments that might otherwise have been lost to the pace of everyday life," said Jaylen Lyles, a Minnesotan who took Bonding Leave after his daughter Charlotte was born. "As a Black father, that time matters deeply. Being able to show up fully for my daughter during these early months isn't just meaningful for our family, it's part of building stronger foundations for the next generation." Learn more about Jaylen's story.

So far in 2026, premium collections are broadly in line with the cost of payments made. The new actuarial analysis projects that 2027 will remain at a sustainable level. Because Minnesota Paid Leave is still a new program, this actuarial analysis is based on similar information to prior analyses. This includes workforce data and studies of other states. Starting next year, actuarial analysts will have a full year of Minnesota program data to study.

"Programs like Paid Leave give small and mid-sized employers the ability to support employees in ways that would otherwise be difficult to provide on our own," said Jacque Lee, CEO of The Silva Way, a Minnesota screen printing and apparel decoration company. "Businesses already absorb the disruption caused by major life events through unplanned absences, turnover and the loss of experienced employees. Paid Leave creates a more structured and predictable way to navigate those situations, helping employers plan ahead while supporting the people they've invested in." Read more about Jacque's experience.

Under the law, the premium rate is set each year by July 31 for the following year, based on program historical experience and an independent actuarial analysis.