What Percentage Employer Contribution Health Insurance?

When it comes to health insurance, many people are unaware of the employer contribution health insurance. This is a form of coverage that employers offer to their employees in order to help cover the costs of health care. Employer contributions health insurance can be a valuable benefit for employees, as it can help to offset the costs of health care. However, many people don’t realize just how much the employer contributes to their health insurance. In this blog post, we will explore what percentage employer contribution health insurance is and how it can benefit you. From there, you can decide if this type of coverage is right for you.

The Purpose of Health Insurance

Health insurance is a necessity for many people, but what percentage of the employee’s paycheck does their employer contribute? Generally speaking, employers contribute a percentage of an employee’s paychecks towards health insurance. The purpose of health insurance is to protect employees and their families from unforeseen medical expenses.

Employers may offer different types of health insurance plans, including individual policies, family plans, and group plans. In general, employers who offer health insurance will pay a percentage of the employee’s premium towards the plan. Some employers may also provide additional benefits like prescription drug coverage or extended healthcare coverage.

The amount that an employer pays towards an employee’s health insurance premiums can vary depending on the employee’s salary and the type of plan they are enrolled in. However, on average, employers will pay around 27% of an employee’s premium cost.

Employer Contributions to Health Insurance

When considering how much to contribute to an employee’s health insurance, employers should consider a variety of factors. The percentage an employer contributes can depend on a number of factors, including the size of the business and the employee’s salary.According to HealthCare.gov, the average employer contribution for family coverage is about 9 percent of an employee’s monthly salary. If an employee earns less than $25,000 per year, the employer may be exempt from contributing to their health insurance premiums.

How Much Does an Employer Contribute to an Employee’s Health Insurance?

An employer’s contribution to an employee’s health insurance can vary greatly based on the size of the company, the type of coverage offered, and the employee’s situation. For example, a small business with less than 50 employees may only be required to pay a percentage of gross premiums, while a company with more than 500 employees may be required to contribute a set dollar amount per employee.

Here is a table that shows how much an employer must contribute for family coverage under Obamacare plans:

Size of Employer Contribution (per Employee) Percentage of Gross Premiums 1-50 $10 1% 51-100 $20 2% 101-250 $30 3% 251-500 $40 4% 501+ $50 5%

The percentages above are based on an employee earning up to 250 percent of the poverty level. If an employee earns more than 250 percent of the poverty level, their employer must contribute at least 100 percent of premiums.

How Much Does an Employee Pay for Their Own Health Insurance?

It can be a confusing task trying to work out how much an employee pays for their own health insurance. There are various factors to take into account, such as the type of plan and whether the employee is covered by salary or hourly pay. Generally speaking, employees will pay around 30% of the cost of their health insurance premiums.


When it comes to choosing an employer-sponsored health insurance plan, there are a lot of factors to consider. One of the most important is how much the employer will contribute toward your coverage. Employers may offer different percentages for employee contributions, so it’s important to research what those percentages are before you make a decision.