No Thresholds for Used PTO Pay

Starting July 1, 2026, supplemental pay during an authorized leave is eligible for PERA contributions if the employee's regular average salary is not exceeded when combining:

• supplemental pay, plus
• pay for time worked, plus
• any leave payments.

Paid Family and Medical Leave (PFML), workers’ compensation, and short-term disability payments are not eligible for PERA contributions. Report any missed or ineligible salary on your Annual Leave Report.

For pay issued before July 1, 2026, if an employee did not use all their available PTO in a pay period, supplemental pay used during a non-workers’ compensation leave must have met the replacement threshold to be eligible for PERA contributions. Those thresholds were at least 50% of the employee’s regular average salary during a medical leave or 100% during a non-medical leave.