The employee benefits rate is the ratio of total plan costs divided by total salaries and wages paid to non-student employees. These are calculated by the Costing team in the Office of Planning, Budget and Analysis each year and negotiated with the federal government. Princeton has two main campus benefits rates: one for administrative departments and one for academic departments and programs. See our formal rate agreement.
Main Campus Employee Benefits Rates
The billing rates below are based on projected costs. Any over- or under-recovery is carried forward and built into future rates.
| Benefits Rate Components | FY2024 | FY2025 |
|---|---|---|
| Medical and prescription drug coverage | 12.2 | 11.5 |
| Retirement plan | 9.4 | 8.8 |
| Princeton’s share of FICA and Medicare taxes | 6.4 | 6.3 |
Other:
| 2.4 | 2.3 |
| TOTAL ADMINISTRATIVE RATE | 30.4% | 28.9% |
| Faculty sabbatical leaves and short-term disability | 6.9 | 7.5% |
| TOTAL ACADEMIC RATE | 37.3% | 36.4% |
Princeton Plasma Physics Laboratory (PPPL) Rate
PPPL has a separate benefits rate which is estimated in advance and adjusted to recover actual costs each fiscal year.
Rate Calculation and Application
The employee benefits rate is applied to every non-student salary dollar processed through Princeton’s Labor Accounting system, which calculates the benefits charge based on staff class and department. It applies to the following account codes:
Prior to July 1, 2014: 201-207, 210, 301-307, and 501-503
On and after July 1, 2014: 5003-5005, 5051-5053, 5093, 5101, 5151-5155, 5181-5184, and 5301-5303
Student Exemptions
The following student salary account codes are exempt from the benefits rate charge:
Prior to July 1, 2014: 208 and 209
On and after July 1, 2014: 5201-5206 and 5251-5252
Projected Rates
The rates below are provided for internal planning purposes only and have not been approved by the federal government. Please visit the ORPA website to find the rates currently approved for use in preparing budgets for federally sponsored awards.
| Fiscal Year | Administrative Rate | Academic Rate |
|---|---|---|
| 2026 | 29.1 | 36.8 |
| 2027 | 30.0 | 36.8 |
| 2028 | 30.3 | 37.1 |
Main Campus Employee Benefits Rates
| Fiscal Year | Administrative Rate | Academic Rate |
|---|---|---|
| 2025 | 28.9 | 36.4 |
| 2024 | 30.4 | 37.3 |
| 2023 | 29.3 | 36.0 |
| 2022 | 28.4 | 35.5 |
| 2021 | 27.5 | 34.1 |
| 2020 | 26.6 | 33.9 |
| 2019 | 29.0 | 36.0 |
| 2018 | 28.2 | 37.1 |
| 2017 | 28.2 | 33.3 |
| 2016 | 29.2 | 34.8 |
| 2015 | 28.2 | 34.2 |
| 2014 | 27.9 | 33.7 |