How is the program funded?

Paid Leave is a program we all pay into. Here’s how it works for employees:

• 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 it won’t be more than 1% of an employee’s gross wages.
  • For example, if an employee’s paycheck totals $1,000, they would pay $6 as their portion of contributions 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 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, don’t have to contribute. But, they still need to collect and submit employee contributions and protect employees’ jobs while they are on paid leave.
  • Assistance grants are available for small employers.