California boosts paid family leave benefits to up to 90% for low-income workers starting 2025
California – In a significant move aimed at supporting working families, Governor Gavin Newsom declared a landmark increase in paid family leave and disability benefits for Californians, set to commence on January 1, 2025. Under the new framework, California will enhance the compensation for workers under paid family leave to unprecedented levels.
A significant increase from the current maximum of 70%, the reform will see workers earning less than $63,000 annually get up to 90% of their usual salaries while on leave. Those making more over this income level will now get 70 percent of their pay during their leave period. This program represents a significant advance in enabling all workers throughout the state to finance and access family leave.
“Expanded paid family leave benefits are about making it easier for Californians to care for themselves, bond with a new child, and care for their families without worrying about how they’ll pay the bills. This is another example of California leading the way in supporting workers, creating a more affordable California, and building more opportunity for all,” Gov. Newsom said.
First Partner Jennifer Siebel Newsom also commented on the importance of these expanded benefits, highlighting their role in supporting working parents and caregivers.
“Expanding paid family leave and disability benefits isn’t just a policy, it’s a reflection of who we are and what we value. In California, we stand up for working mothers, parents, and caregivers by giving them the time they need to bond with a newborn, care for a loved one, or heal from an illness without the fear of losing their livelihood. This is what it means to put care and families first,” she explained.
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Legislated by Senate Bill 951, written by Senator Maria Elena Durazo, this improvement primarily targets medium and lower-income employees so they may manage family and medical leave free from financial burden. Senator Durazo praised the governor’s support.
“SB 951 will ensure every California worker can afford to care for their family and themselves during life’s most 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,” Durazo said.
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The Employment Development Department (EDD) Director Nancy Farias detailed the pragmatic effects of the new law: Farias claims that this benefit increase makes it more reasonable to take time off from work and look after an ill family member, connect with a kid, or recover from a disease or injury. For millions of Californians, these investments enhance their quality of life and boost the labor force.
The 2025 benefit increase is a major shift and an important advancement in the state’s approach to worker benefits and family welfare. California maintains a high benchmark for supporting its labor with this new legislation, therefore making sure workers do not have to decide between their health or their financial stability.
