Colorado Will Lower Paid Leave Program Premiums in 2027
State workers and employers will pay lower FAMLI premiums starting next year to balance costs and benefits.
Updated on Oct. 7, 2026 in Child Care
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The Colorado Department of Labor and Employment will decrease the state's FAMLI program premium rate to 0.86% beginning in 2027. This adjustment affects workers and businesses statewide who participate in the paid family and medical leave program.
Why it matters
This rate adjustment aims to help Colorado workers retain more of their income while providing businesses with modest savings. The state intends for the change to maintain the long-term financial sustainability of the benefit program for all participants.
Official government figures show the premium rate is decreasing from 0.88% in 2026 to 0.86% in 2027. This follows the initial 0.9% rate established at the program launch in 2023.
The players
Colorado Department of Labor and Employment
The state agency responsible for overseeing employment policy, labor relations, and the administration of Colorado's paid family and medical leave benefits.
The details
The Colorado Department of Labor and Employment manages the FAMLI program, which provides eligible workers with up to 12 weeks of paid leave. The department adjusts the premium rate periodically to balance the funding needed to support benefit distributions with the economic impact on the workforce and employers.
Timeline
2023 marked the initial premium rate setting of 0.9%.
2024 saw the start of FAMLI benefit distribution.
2026 saw the premium rate decrease to 0.88%.
2027 marks the start of the new 0.86% premium rate.
Health Landscape
This premium adjustment follows the funding requirements established by the Colorado FAMLI Act. It reflects the ongoing effort to balance the accessibility of family and medical leave with the fiscal health of state-run social insurance programs.
If you are a Colorado employee, you may notice a slight change in your paycheck deductions starting in 2027. It is worth reviewing your pay stubs after the new year and discussing any questions about your benefits with your HR department or employer.
The takeaway
The decrease in FAMLI premiums aims to improve the balance between worker income and program sustainability. Consider reviewing the official program guidelines for the 12-week leave eligibility to ensure you understand your rights before any potential life event.
Further reading
For more on how family leave policies support working parents, visit Child Care.
Live Poll
Do you support reducing payroll tax-funded benefit premiums to increase current worker take-home pay?
