Starting in January, California will increase leave payments for workers caring for a new child or a sick family member. The change stems from legislation passed in 2022 that was intended to address inequities in who was taking leave, as many low-income earners couldn’t afford to do so. A California Budget & Policy Center analysis found that in 2020, workers making $80,000 to $100,000 were using paid family leave benefits at nearly four times the rate of workers making less than $20,000.
“Low wage workers were not taking time off when they needed to for their health or to care for sick family or to bond with a new child because they just couldn't afford to lose 40% of their income,” said Katherine Wutchiett, senior staff attorney at Legal Aid at Work. Currently, most workers get 60% of their income replaced through the state’s disability insurance program. That will increase to 90% of income for workers making up to $60,000 a year.
Workers who make more than that will go up to 70%. With median annual wage at $54,030 in California, that means most workers in California would get the higher 90%, Wutchiett said. The State Disability Insurance program is funded through workers currently contributing 1.
1% of their income . On a paystub, that withholding might be labeled as “CASDI” or “CA Disability Employee.” Prior to the legislation, there was a cap each year on the amount higher earners paid into the fund.
Those workers only paid a percentage of their income up to $153,164 in 2023. Now, that cap is gone — and all workers pay the same percentage for all of their income. The date you start your leave matters in terms of how much a worker can recoup in income, Wutchiett says.
People who apply in 2024 rather than 2025 will get the lower 60% even if their leave extends into 2025. So people with December 2024 babies, for instance, will not meet the cutoff. But Wutchiett says non-birthing parents who have babies in 2024 can delay their paid family leave to bond until 2025.
“You can use paid family leave to bond with a baby within a year of when the baby is born,” she said..
