Table 7.
Estimated costs of 6-week bonding leave, 3 employee examples.
| 2018 Maximum salary for benefits ($2209/week)1 | 2018 SF Minimum Wage (full time)2 | 2018 SF Minimum Wage (part time)3 | |
|---|---|---|---|
| Assumed hours/week | 40 | 40 | 26.8 |
| Wage ($/hour) | 55.23 | 15 | 15 |
| Total salary over 6 week leave | $ 13,254.00 | $ 3600.00 | $ 2412.00 |
| Employer's responsibility (replacement rate) | 40% | 40% | 30% |
| Employer cost | $5301.60 | $1440.00 | $723.60 |
| Leave cost as % of total payroll4 | 0.12% | 0.12% | 0.06% |
| Leave cost/hour, spread across all employees | $0.06 | $0.02 | $0.01 |
Note.12018 Maximum salary at which benefits are capped is at $2209/week; 2SF Minimum wage will be $15/hour as of 7/1/18; 3Beginning 1/1/18, California AB908 increased the state replacement rate to 70% for workers earning up to 1/3 of the statewide average weekly wage (SAWW), thus reducing employer responsibility to 30% for those workers. The 2018 California SAWW was $1207, 1/3 of which is $402. At the minimum wage of $15/hour that is equivalent to working 26.8 h/week, or 67% of a 40-h week; 4Assume one out of 40 takes leave per year, based on employer survey.