California is increasing paid family leave benefits starting in January. Here's what to know

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.

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How much more will I get?

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.

How are the benefits funded? 

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.

What if I'm a public employee?

Currently, public sector employees in California don’t automatically pay into the SDI program and so do not get its benefits. Unions have to opt in through labor negotiations, and employees can’t join as individuals. Some unions have opted in. Here's our explainer on paid family leave for public employees.

A bill to give California teachers up to 14 weeks of paid pregnancy leave failed to pass the state legislature in August. That attempt passed the state assembly, with outside support from dozens of organizations, as well as the state treasurer and state superintendent. Opposition included the Association of California School Administrators and the California Association of School Business Officials.

The bill was shelved in the Senate for possible future consideration.

What else do I need to know? 

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.