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Capital City
Harrisburg
Timezone
EST
(
GMT-5
)
Paid Leave
None
Income Tax
3.07%
Employer Tax
10.37%
Capital City
Harrisburg
Timezone
EST
(
GMT-5
)
Paid Leave
None
Income Tax
3.07%
Employer Tax
10.37%
Pennsylvania is not a right-to-work state, meaning union membership can be a condition of employment in unionised workplaces.
Known for its steel, manufacturing, and healthcare industries, Pennsylvania has a diverse labour market, particularly strong in Pittsburgh and Philadelphia.
Some local jurisdictions impose additional earned income and occupational privilege taxes, so employer withholdings may vary by location.
Yes, if you plan to hire employees in Pennsylvania, you’ll need an Employer Identification Number (EIN) from the IRS. This number is required to report federal employment taxes and fulfil other federal requirements. Additionally, employers in Pennsylvania must register with the Pennsylvania Department of Revenue and the Department of Labor and Industry to obtain a payroll tax number. This state tax number is used for reporting and remitting state unemployment insurance (UI) tax and state withholding taxes.
In Pennsylvania, standard working hours are typically 40 hours per week for full-time employment, though there is flexibility based on employer policies. The state mandates overtime pay for hours worked over 40 per week at a rate of 1.5 times the regular pay rate. However, there are no legal limits on daily working hours unless specific safety regulations apply. Federal regulations restrict the employment of minors, including limits on the number of hours they can work and prohibitions on hazardous work.
While Pennsylvania does not have a legal definition of full-time employment, the threshold commonly recognized by employers is 35–40 hours per week. This aligns with federal guidelines, but specific criteria may vary depending on the employer and the benefits tied to full-time status.
Pennsylvania employment law does not mandate a probation period for new hires. Probationary periods are typically determined by the employer and used as an evaluation phase, but they are not legally required or regulated by the state.
The current minimum wage in Pennsylvania is $7.25 per hour, in line with the federal minimum wage.
Pennsylvania’s anti-discrimination laws prohibit discrimination based on race, color, religion, national origin, sex, disability, age (40 and older), and genetic information. State laws also protect against discrimination based on marital status, pregnancy, and, in some localities, sexual orientation and gender identity. These laws apply to hiring, firing, promotions, and other employment practices. Complaints can be filed with the Pennsylvania Human Relations Commission (PHRC) or the federal Equal Employment Opportunity Commission (EEOC).
In general, employees are paid semi-monthly and monthly. Should the payment date be semi-monthly, the employer must make the salary payment within 10 days of the end date of the pay period.
In Pennsylvania, employers must contribute to several types of employment taxes to ensure compliance with both state and federal requirements.
In Pennsylvania, the deadline for filing individual state income tax returns aligns with the federal deadline, typically on April 15. If April 15 falls on a weekend or federal holiday, the deadline is extended to the next business day.
Not mandatory for private sector employers.
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Vacation leave is not mandatory in Pennsylvania, but if an employer provides it, they must adhere to their policy or employment agreement. Payment for unused vacation upon termination is only required if specified in the employer’s policy.
PTO is not mandated by state law, so employers are not required to provide paid or unpaid vacation or personal days. If offered, PTO must follow the employer's policy or contract terms.
In Pennsylvania, there is no state-mandated maternity leave. Employees rely on the federal Family and Medical Leave Act (FMLA), which provides unpaid, job-protected leave for eligible employees to care for a newborn, adopted child, or newly placed foster child. If FMLA doesn’t apply, any maternity leave would depend on the employer’s policies. Some companies may offer paid maternity leave voluntarily as a benefit.
In Pennsylvania, there is no state-mandated paternity leave. Eligible employees may qualify for unpaid, job-protected leave under the federal Family and Medical Leave Act (FMLA) to care for a newborn, adopted child, or newly placed foster child. If FMLA doesn’t apply, any paternity leave would depend on the employer’s specific policies, as Pennsylvania law does not provide additional leave requirements for paternity.
State law does not require paid sick leave, but FMLA may be utilised for job-protected unpaid leave in instances such as a serious health condition or to care for an immediate family member with a serious health condition. Certain cities, like Philadelphia and Pittsburgh, require paid sick leave for some employers.
Federal law (USERRA) provides unpaid leave and job protection for employees in the armed forces, including the National Guard and Reserves, ensuring reemployment rights upon return from service.
Employers must provide unpaid leave for jury duty and cannot penalize employees for serving. While pay is not required, employers must not retaliate for jury service.
No legal requirement for employers to provide leave; policies depend on the employer.
No specific legal requirement for time off to vote, though employers are encouraged to allow time if work schedules conflict with polling hours.
Employers must navigate both federal laws and specific state regulations when offering benefits.
Under the Affordable Care Act (ACA), employers with 50 or more full-time equivalent employees must provide health insurance to their full-time employees or face potential penalties. Employers with fewer than 50 full-time equivalent employees are not obligated to offer health insurance but may choose to do so to attract and retain talent.
No law mandates that employers provide benefits to part-time employees. Offering benefits such as health insurance, paid time off, or retirement plans to part-time staff is at the employer’s discretion. However, if benefits are offered, employers must adhere to the terms of their established policies or employment contracts.
There is no federal or state law requiring employers to offer 401(k) or other retirement plans. The choice to provide such benefits is voluntary and often based on an employer’s desire to remain competitive in the job market. If a retirement plan is offered, employers must comply with the Employee Retirement Income Security Act (ERISA) and other regulations to ensure proper management and fiduciary responsibility.
Employers not bound by specific mandates can still benefit from offering comprehensive packages to attract and retain skilled talent.
Pennsylvania operates under the "at-will" employment doctrine, meaning employers can terminate employees for any reason, at any time, without prior notice, as long as the reason is not illegal. Conversely, employees can also resign without reason or notice.
There is no legal requirement for employers to provide a notice period before terminating an employee. However, under the federal Worker Adjustment and Retraining Notification (WARN) Act, employers with 100 or more employees must provide 60 days' notice before a mass layoff or plant closure affecting 50 or more employees.
Pennsylvania law does not require employers to provide severance pay upon termination. Severance agreements are typically governed by the terms of the employment contract or company policy.
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As of January 1, 2024, Pennsylvania’s minimum wage rates are:
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