Topline:
Starting in the new year, California will increase family leave payments for workers caring for a new child or sick family member.
The backstory: If you look at your paystub, you might notice that about 1% is withheld for the state’s disability fund. (It’s often labeled “CASDI” or “CA Disability Employee.”) Right now, most workers can get 60% of their income from that fund when they take time off for disability or paid family leave.
What’s new: Workers who make about $60,000 or less will now get paid 90% of their income starting January, and other workers will get 70%.
How it’s funded: Previously, 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 — which is 1.2% for 2025.
Read more: California is increasing paid family leave benefits starting in January. Here's what to know