On July 31, 2026, the Minnesota Department of Employment and Economic Development (DEED) announced that the premium rate for the Minnesota Paid Leave (MPL) program will remain at 0.88% of covered wages for 2027, unchanged from the current year. According to DEED, the program has seen significant utilization in its first six months, with more than 75,000 Minnesotans taking Paid Leave in 2026 and over $600 million in payments issued to date. DEED Commissioner Matt Varilek stated that the agency is “keeping the premium rate at 0.88% for 2027″ and looks forward to evaluating the program’s long-term sustainability as additional data becomes available.
Bottom Line
Employers should be aware that Minnesota Paid Leave is now fully funded by premiums rather than the initial startup funding provided in the 2023 legislation. Under the MPL statutes, the premium rate is set annually by July 31 for the following year, based on historical program experience and independent actuarial analysis. Although the news for 2027 may be considered positive, a full year of Minnesota-specific program data will not be available for study until next year. In other words, don’t bank on another zero increase just yet.