California Boosts Paid Family Leave and disability Benefits
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California workers received a meaningful boost to their paid family leave and disability benefits starting January 1, 2025, thanks to the passage of Senate Bill 951. This landmark legislation, authored by State Senator María Elena durazo, aims to make it easier for Californians to balance work and family responsibilities, and to recover from illness or injury without facing crippling financial hardship.
The new law increases the percentage of wages replaced during leave, offering a much-needed safety net for millions. For workers earning less than $63,000 annually, the benefit now covers up to 90% of their regular pay. Those earning more will receive up to 70%.
“SB 951 will ensure every California worker can afford to care for their family and themselves during life’s most critically important moments. I applaud Governor Newsom for signing my bill into law, which will allow middle and low paid workers to receive up to 90 percent of their wages when out on leave. This change will benefit millions of workers who have contributed to the program during their careers. This bill, which I was proud to introduce, is part of the historic work california is doing to expand equitable access to paid leave.”
—Senator Maria elena Durazo, author of SB 951
The expanded benefits cover a range of situations, including pregnancy, childbirth recovery, caring for a seriously ill family member, bonding with a new child, and even supporting loved ones during military deployments. This extensive approach reflects a growing national recognition of the importance of paid leave in supporting both workers and families.
“This benefit boost makes it more affordable to take time off work and care for an ill family member, bond with a child, or recover from illness or injury. These investments strengthen California’s workforce and improve the lives of millions of Californians.”
—Employment Progress department (EDD) Director Nancy Farias
Key Changes in California Paid Leave Benefits (2025)
- Increased Wage Replacement: Up to 90% of regular pay for workers earning under $63,000 annually; up to 70% for higher earners.
- Effective Date: The increased benefits apply to new claims filed on or after January 1, 2025.
- 2024 Claims: Claims filed in 2024 will retain the previous benefit levels (60-70% of weekly wages).
California’s disability and paid family leave programs are funded through payroll contributions and provide crucial support to over 18 million workers and their families. Eligible workers can receive up to 52 weeks of disability benefits and up to 8 weeks of paid family leave benefits. This expansion underscores California’s commitment to a strong social safety net and a thriving workforce.
California Expands Paid Family leave: A Conversation with Labor Expert Dr.Elena Ramirez
California has considerably increased its paid family leave and disability benefits, marking a major victory for workers’ rights and family well-being. Beginning January 1, 2025, eligible Californians will receive up to 90% of their wages while on leave, depending on their income.
This expansionpackage, championed by State Senator Maria Elena Durazo, reflects a growing national trend toward supporting working families and ensuring they have the
resources to navigate life’s milestones and challenges without financial strain. In this interview, Dr. Elena Ramirez, a leading labor economist at the University of california, Berkeley, discusses
the implications of this landmark legislation.
The Scope of the Increase: Who Benefits?
senior Editor: Dr. Ramirez, thank you for joining us. Could you explain the key changes in California
paid leave benefits for our readers?
Dr. Ramirez: Certainly. This
new law substantially increases the wage replacement rate for Californians taking paid family leave or disability leave. For those earning under $63,000 per year, the maximum benefit will
jump to 90% of their regular pay. Higher earners will receive up to 70%. This
is a meaningful advancement over the previous maximum of 70% for all eligible workers.
Senior Editor: What types
of situations qualify for these benefits?
Dr. Ramirez:
California
has a comprehensive paid leave program. Workers can access these benefits for a range of reasons, including the birth or adoption of a child, caring for a seriously
ill family member, or recovering from their own serious illness or injury. The program also covers bonding time after the birth of a child, fostering, and even supporting loved ones
during military deployments.
Economic Impact: balancing Work and Family Needs
Senior Editor: How
will these changes impact California’s workforce and economy?
Dr. Ramirez:
I believe this expansion will have a profoundly positive impact. By providing greater
financial security, it will enable more
peopel to take the time they need to care for themselves and their families without facing
a devastating financial blow. This, in turn,
can lead to improved health
outcomes, reduced stress, and increased productivity when individuals return to work.
Senior Editor: Are there any concerns about the
cost of these expanded benefits?
Dr Ramirez:
It’s vital to remember that these benefits are funded through
payroll contributions. This
shared responsibility model ensures that the costs are spread across
the workforce, rather than falling disproportionately on individuals or businesses.
Ultimately, a
strong social safety net
like this one strengthens the entire economy by creating a
more equitable and resilient workforce.
