Paid Leave is a program we all pay into. Here’s how it works for employees:
- Employees pay 60% of the contribution rate. The Oregon Employment Department decides the amount before the beginning of each year, and will not be more than 1% of the employee’s gross wages.
- For example, if an employee’s paycheck totals $1,000 dollars, they would pay $6 as their portion of the contribution for that paycheck.
- The contribution rate for 2023 is 1%.
Here’s how it works for employers:
- Employers with 25 or more employees pay 40% of the contribution rate.
- For example, if a business has more than 25 employees and pays $1 million in payroll, it would pay $10,000 into Paid Leave Oregon each year. Employers will pay 40% ($4,000) of this amount and are responsible for collecting and submitting their employees’ contributions.
- Employers can also choose to pay the employee portion, in full or in part, as a benefit for their employees.
- Small employers, those with fewer than 25 employees, are not required to contribute. But, you still need to collect and submit employee contributions and protect their job.
- Assistance grants are available for small employers.