Oregon employees see PFML deductions on their paystubs but may not understand what this state program provides or how the contribution rate is split between employee and employer.

What is the Oregon PFML deduction?

Best Answer

Sarah Chen, Payroll Tax Analyst

Oregon workers who want to understand their PFML deduction amount and the comprehensive benefits it provides

What is Oregon PFML and how much does it cost employees?

Oregon Paid Family and Medical Leave (PFML) is a state insurance program that provides wage replacement during qualifying family and medical leave. Unlike some states, Oregon splits the cost between employees and employers, with employees paying 0.4% of wages up to the Social Security wage base of $168,600 for 2026.

Your employee contribution:

0.4% of wages up to $168,600 annually

Maximum annual employee cost: $674.40

Your employer pays an additional 0.6% (total program cost: 1.0%)

Example: Oregon PFML cost by salary level

Here's what Oregon employees actually pay for PFML coverage:

What Oregon PFML covers

Your PFML contributions provide access to:

Family Leave (up to 12 weeks):

Bonding with a new child (birth, adoption, foster placement)

Caring for family member with serious health condition

Military family leave for deployment or injury

Medical Leave (up to 14 weeks):

Your own serious health condition

Pregnancy disability and recovery

Mental health conditions requiring treatment

Benefit amount: 100% of your average weekly wage up to $1,329/week (2026), or 90% of state average weekly wage, whichever is lower.

Key differences from other state programs

Employer contribution: Oregon employers pay 0.6% while employees pay 0.4%, making it more affordable for workers than states where employees pay the full cost

Higher benefits: 100% wage replacement up to the cap, compared to 60-90% in most other states

Longer medical leave: 14 weeks for medical vs. 12 weeks in many other states

Job protection: Coordinated with Oregon Family Leave Act for position restoration

What you should do

Verify your PFML deduction by multiplying your gross wages by 0.004 (0.4%). If you work multiple jobs in Oregon, each employer deducts PFML, but your total annual liability caps at $674.40. Keep records if you might exceed the wage cap.

Use our paycheck calculator to see how Oregon PFML combines with federal taxes, state income tax, and other deductions to determine your net pay.

Key takeaway: Oregon PFML costs employees just 0.4% of wages (maximum $674 annually) while providing up to 100% wage replacement for 12-14 weeks of family and medical leave, with employers covering the majority of program costs.

Key Takeaway: Oregon PFML costs employees just 0.4% of wages (maximum $674 annually) while providing up to 100% wage replacement for 12-14 weeks of family and medical leave, with employers covering the majority of program costs.

Calculate your Oregon take-home pay →

Annual Salary	Employee PFML (0.4%)	Per Biweekly Paycheck	Monthly Cost	Employer Pays (0.6%)	Total Program Cost
$45,000	$180	$6.92	$15.00	$270	$450
$65,000	$260	$10.00	$21.67	$390	$650
$85,000	$340	$13.08	$28.33	$510	$850
$120,000	$480	$18.46	$40.00	$720	$1,200
$168,600+	$674 (max)	$25.94	$56.20	$1,011	$1,686

Annual Salary

Employee PFML (0.4%)

Per Biweekly Paycheck

Monthly Cost

Employer Pays (0.6%)

Total Program Cost

$45,000

$180

$6.92

$15.00

$270

$450

$65,000

$260

$10.00

$21.67

$390

$650

$85,000

$340

$13.08

$28.33

$510

$850

$120,000

$480

$18.46

$40.00

$720

$1,200

$168,600+

$674 (max)

$25.94

$56.20

$1,011

$1,686

More Perspectives

Sarah Chen, Payroll Tax Analyst

New Oregon workers learning about PFML deduction and wondering how it compares to benefits at other employers

Oregon PFML for entry-level workers: Better than most employer benefits

As someone starting your career in Oregon, PFML might seem like just another payroll deduction. But it's actually one of the most valuable benefits you'll have, often better than what individual employers offer.

What you pay on entry-level salaries:

$30,000 salary: $120/year ($4.62 per biweekly paycheck)

$35,000 salary: $140/year ($5.38 per biweekly paycheck)

$40,000 salary: $160/year ($6.15 per biweekly paycheck)

Why PFML is especially valuable early in your career

Many entry-level jobs offer limited or no paid leave:

Small employers often can't afford comprehensive leave policies

You might not qualify for employer benefits until after 90 days or 1 year

PFML provides coverage from day one of employment

Life doesn't wait for career advancement:

Family emergencies (caring for parents, siblings)

Your own health issues (mental health, injuries, chronic conditions)

Future family planning becomes more affordable

The math works in your favor:

For a $35,000 salary ($673/week), Oregon PFML would pay you $673/week during qualifying leave—your full wages up to the cap. Compare this to unpaid FMLA or the limited sick days many entry-level positions offer.

How this affects your budget planning

PFML is mandatory and relatively small compared to other deductions. At $35,000, you're paying about $12/month—less than most streaming services—for comprehensive family and medical leave insurance that follows you between jobs in Oregon.

Key takeaway: For entry-level Oregon workers, PFML costs under $200/year but provides full wage replacement during family and medical emergencies, often exceeding what individual employers can offer.

Key Takeaway: For entry-level Oregon workers, PFML costs under $200/year but provides full wage replacement during family and medical emergencies, often exceeding what individual employers can offer.