Maryland to Launch FAMLI Program With 2027 Payroll Deductions

The Government of Maryland will launch the Family and Medical Leave Insurance (FAMLI) program on January 1, 2027, initiating mandatory payroll deductions for employers and employees. The program requires a total contribution rate of 0.9 percent of wages up to the Social Security wage cap. For employers with 15 or more employees, this cost is typically split, with workers contributing up to 0.45 percent.

Eligible workers will eventually receive up to 12 weeks of paid, job-protected leave for childbirth, serious health conditions, or family care. However, the state will not make benefits available until January 1, 2028, as it requires one year to build the insurance trust fund.

The Maryland Department of Labor maintains that the program will increase worker productivity, retention, and the state's economic competitiveness. Conversely, State Senator Justin Ready criticized the timing, arguing the deductions will hurt economically vulnerable citizens who must pay for a benefit they cannot immediately use. Residents have also expressed frustration over a perceived lack of transparency regarding the gap between payments and benefit eligibility.

The implementation of these deductions follows previous assertions by Governor Wes Moore that the 2027 state budget included no new taxes or fees.