Colorado FAMLI Premium Rates Will Fall in 2027
Starting next year, Colorado workers and employers will see lower payroll contributions for the state's paid leave program.
Updated on Oct. 7, 2026 in Child Care
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The Colorado Department of Labor and Employment is decreasing the FAMLI program premium rate to 0.86% beginning January 1, 2027. This adjustment is designed to help families and businesses retain more income while maintaining the long-term sustainability of the state's paid leave benefits.
Why it matters
The change directly impacts household budgets by reducing the payroll deductions required to fund up to 12 weeks of paid family and medical leave. By incrementally lowering the rate, the state aims to balance the financial health of the program with the goal of minimizing costs for residents and employers.
The FAMLI premium rate is set to drop to 0.86% for the 2027 calendar year, down from the 0.88% rate charged in 2026. This benefit currently provides eligible Colorado workers with up to 12 weeks of paid leave.
The players
Colorado Department of Labor and Employment
The state agency responsible for overseeing labor laws, benefit distributions, and the administration of the FAMLI program.
The details
The Colorado Department of Labor and Employment manages the premium rate to ensure the insurance fund can support the 12-week paid leave benefit. Following the initial launch of the program in 2023, the state has performed periodic adjustments to these rates to ensure fiscal stability. As the program enters its next cycle, this lower percentage will be applied to eligible payroll contributions across the state.
Timeline
2023: The FAMLI premium rate was established at 0.9%.
2024: Benefit distributions officially began for residents.
2026: The premium rate was adjusted downward to 0.88%.
January 1, 2027: The new 0.86% premium rate takes effect.
The Home Front
This premium adjustment follows a trend of stabilizing state-managed social insurance programs after their initial rollout phases. It reflects a shift toward adjusting contribution requirements based on actual usage and fund sustainability metrics under the Colorado FAMLI program.
Review your pay stubs or payroll documentation in January 2027 to confirm the updated FAMLI deduction rate is being applied correctly. Households should also familiarize themselves with the 12-week leave entitlement to ensure they understand their eligibility if family medical needs arise.
The takeaway
The FAMLI program remains a critical resource for Coloradans needing up to 12 weeks of paid leave for family or medical reasons. Families should keep a record of these rate changes for their annual budget planning as the state continues to refine the contribution percentages.
Further reading
Learn more about local support systems in our Child Care section.
Live Poll
Do you support reducing payroll tax-funded benefit premiums to increase current worker take-home pay?
