Paid Leave Oregon is setting the contribution rate for employers and workers at 1 percent when it launches in 2023.
Paid Leave Oregon will allow workers to take paid time off for some of life’s most important moments. It covers leave for the birth or adoption of a child, for serious illness or injury, for taking care of a seriously ill family member, and for domestic violence, sexual assault, stalking or harassment.
Starting Jan. 1, 2023, workers will pay 60 percent and employers will pay 40 percent of the contribution rate. For example, if an employee made $1,000 in wages, the employee would pay $6 and the employer would pay $4 for this paycheck. Employers may choose to pay the employee portion as a benefit for their employees.
Paid leave contributions will go into a trust fund, which in turn, will provide the revenue for the paid leave benefits for workers starting Sept. 3, 2023. Oregon law says the Oregon Employment Department Director will set the paid leave contribution rate annually. The law also requires the trust fund to have enough funds to pay benefits for up six months.
Paid Leave Oregon Director Karen Madden Humelbaugh said the contribution rate was set based on actuary data and forecasts at 1 percent to make sure the program will have enough funds to meet the legal requirement and pay benefits for Oregon workers. “Setting contributions at 1 percent means we will have enough money to support the program in the long term,” she said, adding that the program has...
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