Applicable Large Employers (ALEs) may use the Affordable Care Act’s Rate of Pay safe harbor as one method of determining affordability under the ACA Employer Mandate.
For plan years beginning in 2027, an employee’s required contribution toward the lowest-cost, self-only coverage option that provides minimum value generally satisfies the Rate of Pay safe harbor if it does not exceed 10.22% of the employee’s applicable monthly Rate of Pay amount.
For an hourly employee, the monthly Rate of Pay amount is calculated using:
Hourly Rate × 130 Hours × 10.22%
The ACA requires ALEs using the Rate of Pay safe harbor to use 130 hours per month, regardless of whether an employee actually works more or less than 130 hours during the month.
How to Use This Chart
This chart may be used by an ALE when evaluating or establishing employee contributions under the Rate of Pay affordability safe harbor for hourly employees.
The Rate of Pay safe harbor is based on the lower of:
- the employee’s hourly rate of pay as of the first day of the coverage period, generally the first day of the plan year; or
- the employee’s lowest hourly rate of pay during the applicable calendar month.
If an employee’s hourly rate decreases during the year, the employer should evaluate affordability using the lower applicable rate.
The amounts shown represent the maximum monthly employee contribution that corresponds with the Rate of Pay safe harbor calculation at each listed hourly rate. Affordability applies to the employee’s required contribution for the lowest-cost self-only coverage option that provides minimum value and is available to that employee.
The affordability amounts shown in this chart are truncated to two decimal places, rather than rounded, so that the listed employee contribution does not exceed the applicable affordability threshold.
Important – Affordability and ACA Reporting
The ACA provides three Employer Mandate affordability safe harbors: Rate of Pay, Form W-2, and Federal Poverty Line. Each safe harbor has its own requirements.
An employer using this chart to establish contributions based on the Rate of Pay safe harbor should ensure that the affordability safe harbor it ultimately relies upon for ACA compliance and Form 1095-C reporting is appropriate based on its circumstances. If the employer instead relies upon another safe harbor, such as the Form W-2 safe harbor, the requirements of that safe harbor must be evaluated separately.
Important: This chart is intended as a general educational reference and does not replace an employer’s responsibility to evaluate its specific plan design, employee contributions, workforce changes, or ACA reporting practices.
2027 Rate of Pay Affordability Chart
| Hourly Rate | Monthly Rate of Pay (×130) | Truncated Affordability Amount (10.22%) |
|---|---|---|
| $12.00 | $1,560.00 | $159.43 |
| $12.25 | $1,592.50 | $162.75 |
| $12.50 | $1,625.00 | $166.07 |
| $12.75 | $1,657.50 | $169.39 |
| $13.00 | $1,690.00 | $172.71 |
| $13.25 | $1,722.50 | $176.03 |
| $13.50 | $1,755.00 | $179.36 |
| $13.75 | $1,787.50 | $182.68 |
| $14.00 | $1,820.00 | $186.00 |
| $14.25 | $1,852.50 | $189.32 |
| $14.50 | $1,885.00 | $192.64 |
| $14.75 | $1,917.50 | $195.96 |
| $15.00 | $1,950.00 | $199.29 |
| $15.25 | $1,982.50 | $202.61 |
| $15.50 | $2,015.00 | $205.93 |
| $15.75 | $2,047.50 | $209.25 |
| $16.00 | $2,080.00 | $212.57 |
| $16.25 | $2,112.50 | $215.89 |
| $16.50 | $2,145.00 | $219.21 |
| $16.75 | $2,177.50 | $222.54 |
| $17.00 | $2,210.00 | $225.86 |
| $17.25 | $2,242.50 | $229.18 |
| $17.50 | $2,275.00 | $232.50 |
| $17.75 | $2,307.50 | $235.82 |
| $18.00 | $2,340.00 | $239.14 |
| $18.25 | $2,372.50 | $242.46 |
| $18.50 | $2,405.00 | $245.79 |
| $18.75 | $2,437.50 | $249.11 |
| $19.00 | $2,470.00 | $252.43 |
| $19.25 | $2,502.50 | $255.75 |
| $19.50 | $2,535.00 | $259.07 |
| $19.75 | $2,567.50 | $262.39 |
| $20.00 | $2,600.00 | $265.72 |
| $20.25 | $2,632.50 | $269.04 |
| $20.50 | $2,665.00 | $272.36 |
| $20.75 | $2,697.50 | $275.68 |
| $21.00 | $2,730.00 | $279.00 |
| $21.25 | $2,762.50 | $282.32 |
| $21.50 | $2,795.00 | $285.64 |
| $21.75 | $2,827.50 | $288.97 |
| $22.00 | $2,860.00 | $292.29 |
| $22.25 | $2,892.50 | $295.61 |
| $22.50 | $2,925.00 | $298.93 |
| $22.75 | $2,957.50 | $302.25 |
| $23.00 | $2,990.00 | $305.57 |
| $23.25 | $3,022.50 | $308.89 |
| $23.50 | $3,055.00 | $312.22 |
| $23.75 | $3,087.50 | $315.54 |
| $24.00 | $3,120.00 | $318.86 |
| $24.25 | $3,152.50 | $322.18 |
| $24.50 | $3,185.00 | $325.50 |
| $24.75 | $3,217.50 | $328.82 |
| $25.00 | $3,250.00 | $332.15 |
| $25.25 | $3,282.50 | $335.47 |
| $25.50 | $3,315.00 | $338.79 |
| $25.75 | $3,347.50 | $342.11 |
| $26.00 | $3,380.00 | $345.43 |
| $26.25 | $3,412.50 | $348.75 |
| $26.50 | $3,445.00 | $352.07 |
| $26.75 | $3,477.50 | $355.40 |
| $27.00 | $3,510.00 | $358.72 |
| $27.25 | $3,542.50 | $362.04 |
| $27.50 | $3,575.00 | $365.36 |
| $27.75 | $3,607.50 | $368.68 |
| $28.00 | $3,640.00 | $372.00 |
| $28.25 | $3,672.50 | $375.32 |
| $28.50 | $3,705.00 | $378.65 |
| $28.75 | $3,737.50 | $381.97 |
| $29.00 | $3,770.00 | $385.29 |
| $29.25 | $3,802.50 | $388.61 |
| $29.50 | $3,835.00 | $391.93 |
| $29.75 | $3,867.50 | $395.25 |
| $30.00 | $3,900.00 | $398.58 |