DENVER ~ Colorado's paid family and medical leave insurance premium rate will fall from 0.88% of wages in 2026 to 0.86% in 2027, Gov. Jared Polis and the state Department of Labor and Employment announced.

The rate applies to premiums paid by workers and employers. Under the program's original structure, each contributes half of the premium through payroll deductions and employer payments.

"This lower premium rate is a win-win," Polis said, adding that it would allow workers to keep more of their pay and reduce costs for businesses while maintaining the program's benefits.

The 2027 rate is the first to be set administratively by the state's Paid Family and Medical Leave Insurance Division, which said the reduction reflects the program's financial position. The division said actuarial projections completed in June 2026 found the program could remain sustainable at the lower rate.

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The rate began at 0.9% of wages when premium contributions started in 2023. Legislation reduced it to 0.88% at the start of 2026. FAMLI Division Director Tracy Marshall said the 2027 reduction would be the second consecutive annual decrease.

Since the program began distributing benefits in 2024, it has paid about $2.25 billion and supported more than 425,000 Colorado families, according to the state.

Voters approved FAMLI in 2020. The program provides eligible workers with up to 12 weeks of paid leave for reasons including their own serious health condition, caring for a family member, bonding with a new child, or seeking safety from domestic violence or assault. It also covers certain needs related to a family member's military deployment.

As of Jan. 1, 2026, eligible parents whose infants receive intensive care can take up to 12 weeks of Neonatal Care Leave during the baby's hospital stay. They may also qualify for up to 12 additional weeks to bond with the child after discharge, the state said.

Most Colorado workers are eligible, including self-employed people and independent contractors. Most employers are required to participate in the program in some way.

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