December 02, 2025
The California Employment Development Department (EDD) has published the 2026 employee contribution rate for the state's disability insurance (SDI) and paid family leave (PFL) for 2026. Effective January 1, 2026, the employee contribution rate for SDI and PFL will increase from 1.2% to 1.3%. Employers with at least one employee in California who earns $300 or more in wages in a 12-month period are subject to the provisions of the SDI program. (SDI is the umbrella program that includes both DI and PFL and through which employee payroll deductions are taken to fund the respective DI and PFL programs.) Employee contribution rates are adjusted annually.
California employers should be aware of these changes to the state’s SDI and PFL programs.
EDD Announcement
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