Employee Benefits Rate

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 Office of Costing, Analysis and Policy (CAP) 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.

Please see the main campus rate agreement for further details.

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 FY2020 FY2021
Medical and prescription drug coverage 10.3 11.0
Retirement plan 9.3 9.2
Princeton’s share of FICA and Medicare taxes 6.3 6.3

Other:

  • Life insurance   

  • Long-term disability insurance

  • Workers' compensation

  • Unemployment insurance

  • Occupational medicine services provided through University Health Services

  • Staff educational assistance

  • Subsidized employee cafeterias

  • Childcare subsidies

  • Mass transit subsidies

0.7 1.0
TOTAL ADMINISTRATIVE RATE 26.6% 27.5%
Faculty sabbatical leaves and short-term disability 7.3 6.6
TOTAL ACADEMIC RATE 33.9% 34.1%

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
2022 28.5 35.6
2023 28.8 35.4
2024 29.0 35.6

Main Campus Employee Benefits Rates

Fiscal Year Administrative Rate Academic Rate
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