Rate of Pay Affordability Chart – Hourly Employees, 2027

About This Chart

This chart shows how the ACA’s Rate of Pay affordability safe harbor works out at a range of hourly wages for plan years beginning in 2027, using the 2027 affordability percentage of 10.22%. See Affordability for how the safe harbors work.

For hourly employees, the Rate of Pay calculation is:

Hourly rate × 130 hours × 10.22%

IRS rules require the calculation to use 130 hours per month, whether an employee actually works more or less.

How to Read It

Each row shows the highest monthly employee contribution for the lowest-cost self-only plan that provides minimum value that would be considered affordable under the Rate of Pay safe harbor at that hourly rate.

• The hourly rate used is generally the lower of the employee’s rate at the start of the coverage period or their lowest rate during the month. If an employee’s rate goes down during the year, the lower rate applies.
• Amounts are truncated, not rounded, to two decimal places, so no amount exceeds the affordability threshold.
• This chart reflects only the Rate of Pay safe harbor. IRS rules provide three affordability safe harbors (Rate of Pay, Form W-2 and Federal Poverty Level), each with its own requirements.

Important: This chart is provided for general educational purposes and reflects the rules as of November 2026. It is not legal or tax advice. How these rules apply depends on each employer’s specific circumstances, including plan design, workforce changes and ACA reporting, so employers should review their situation with their own legal counsel, ERISA attorney, CPA or tax advisor.

2027 Rate of Pay Affordability Chart