Guide to Employee Benefits in US 2025

While the job market in the US continues to fluctuate in 2025, the future is looking a bit brighter. A recent US Bureau of Labor Statistics report projects that the US economy will add 6.7 million jobs between 2023 and 2033.

Offering a comprehensive benefits package is crucial for employers looking to attract new talent and retain existing employees. Nearly 50% of US workers are considering leaving their jobs in 2025 (more than during the ‘great resignation’), according to a recent survey conducted by Microsoft and LinkedIn. Referred to as “loud quitting,” employees today are more vocal about seeking out workplaces that can support their well-being, which often means providing a suite of robust benefits as part of their total compensation package.

In this article, we’ll review the state of employee benefits in the US in 2025, including why these benefits are important, the types of benefits employers are offering and how pet benefits, delivered by providers like Vetster for Business, can help employers attract and retain the best talent in the market.

In the United States, employers offer a range of benefits to their employees as part of a total compensation package in addition to their salary. These benefits can include health, dental, and vision insurance, vacation and sick leave, as well as retirement plans, among other options. While some benefits are mandatory for employers in the US, others are optional. Offering employee benefits helps companies attract and retain talent while also supporting employee well-being and fostering a healthy workplace culture.

Benefits are a great way to help employees feel supported in the workplace. A recent US study found that ‘feeling appreciated and valued at work’ is the number one reason for employees staying in their current roles. Employees who feel valued are also happier, more engaged and more productive at work.

In the US, employer health benefits are typically part of an employee's compensation package. Although there are some federal government healthcare programs like Medicaid and Medicare, as well as legislation like the Affordable Care Act, the US does not have a universal healthcare program. This means comprehensive health benefits are incredibly important to US employees, as their health coverage is often tied to their employment.

Employee benefits are also a standard part of compensation packages in the US, and candidates have come to expect them as a key component of their total rewards. Along with salary, employee benefits help organizations provide a robust offering that attracts and retains talent, supports HR strategies, and offers a competitive advantage.

As part of their employee benefits program, employers often promote partnerships with well-known providers, such as health insurance through Blue Cross Blue Shield, 401(k) retirement plans with Vanguard, or pet benefits through Vetster for Business. Partnering with trusted brands helps employers provide reliable, high-quality benefits that boost employee satisfaction and improve benefits administration.

Employers in the US offer various types of employee benefits, including financial, health-related, and work-life balance benefits designed to meet different needs and boost overall employee satisfaction. Benefits available to employees in the US can vary significantly depending on the employer.

Some of the most common types of employee benefits in the US include:

Health benefits: Employers partner with insurance companies to provide group health plans that cover a portion of the employee's medical expenses. Employees contribute to the cost of the plan through payroll deductions, and the employer covers a significant portion of the premium. These health benefits often extend to dependents as well.

Health insurance plans vary in terms of the services covered, the deductibles and copayments required and the premiums charged.

There are also several different types of health insurance plans, including Preferred Provider Organizations (PPOs), Health Maintenance Organizations (HMOs) and High-Deductible Health Plans(HDHPs). PPOs allow employees to see any doctor or specialist without a referral. HMOs require employees to select a primary care physician who will coordinate their care. HDHPs have high deductibles but lower premiums.

Employee health benefits can include:

• Preventive care (annual checkups, screenings, immunizations)
• Primary care visits (general physician consultations)
• Specialist visits (such as dermatologists, cardiologists)
• Hospitalization (inpatient and outpatient services)
• Emergency services (ER visits and urgent care)
• Prescription drugs (generic and brand-name medications)
• Maternity and newborn care (prenatal, delivery, and postnatal care)
• Mental health services (therapy, counseling, psychiatric care)
• Rehabilitative services (physical, occupational, and speech therapy)
• Chronic condition management (e.g., diabetes, asthma)
• Diagnostic tests (lab work, X-rays, MRIs)
• Surgical procedures (inpatient and outpatient)
• Pediatric services (child wellness checkups, vaccinations)
• Dental and vision care (if included in the plan)
• Telehealth services (virtual medical consultations)

Fertility benefits: Increasing in demand, fertility benefits help cover the costs of fertility medication and treatments, such as in vitro fertilization (IVF).

Transgender healthcare: These benefits cover medically necessary care for transgender employees, such as hormone therapy, mental healthcare and surgical procedures.

Life Insurance: Life insurance provides financial support to an employee's family in the event of their death, offering a one-time, tax-free payment known as a death benefit.

Accidental Death & Dismemberment (AD&D): AD&D insurance provides coverage in cases of accidental death or serious injury. It offers financial support if death occurs due to an accident or if an employee suffers the loss of a body part or essential function, such as vision or hearing.

Short- and long-term disability coverage: Short-term disability insurance helps employees manage temporary medical conditions that prevent them from working for a few weeks to several months. Long-term disability insurance covers more serious, long-lasting, or permanent conditions, offering extended support.

Health Spending Accounts (HSA): An HSA is a designated fund that employees can use to cover additional health-related expenses, such as high-cost eyewear or extra massage therapy sessions.

Employee Assistance Program (EAP): The EAP provides employees with referrals to professional services, such as therapists, lawyers, or accountants, typically for short-term or one-time needs rather than ongoing support.

Premium drug coverage: Some employers are choosing to expand their prescription drug plans to include coverage for non-traditional medications, such as birth control, smoking cessation treatments, and obesity-related medications.

Paid time off (PTO): PTO is a policy that compensates employees when they take time off from work. It can be used for vacation, sick days, or personal days. In the US, the Family and Medical Leave Act (FMLA) allows employees to take up to 12 weeks of unpaid time off for specified family and medical reasons.

Pension and retirement: These benefits typically offer two types of plans: defined benefit plans and defined contribution plans. Defined benefit plans, often called pensions, provide employees with a fixed, predetermined payout upon retirement. These are funded and managed by the employer. Defined contribution plans, such as 401(k)s, involve employees contributing a portion of their salary into an investment account, often with employer-matching contributions.

Child and dependent care: Some benefits plans help cover the cost of child and dependent care as part of a group plan or a separate employee benefit. These benefits can cover the costs of daycare, babysitters and other childcare expenses. Some employers also offer on-site childcare facilities.

In the US, there are certain benefits that employers are legally required to provide to their employees.

These include contributions to Social Security and Medicare, unemployment insurance, and workers' compensation. Employers are also required to comply with the Family and Medical Leave Act (FMLA). The Affordable Care Act (ACA) mandates health insurance for businesses with 50 or more employees, and the Fair Labor Standards Act (FLSA) requires overtime pay and adherence to minimum wage laws. US employers must also provide COBRA coverage for continued health insurance after employment ends and comply with the Uniformed Services Employment and Reemployment Rights Act (USERRA) for military leave.

Some states also mandate certain benefits like paid sick leave or short-term disability insurance.

There are a variety of pet-related benefits offered by employers across the US. Some organizations have chosen to offer pet-friendly offices where employees can bring their pets with them to work, while others offer pet insurance through companies like Pet Benefits Solutions and Spot.

A few employers even offer pet bereavement leave and ‘paw-ternity' leave benefits, offering pet parents time off to grieve the loss of a pet or care for a new pet.

Additional pet-related benefits, such as doggy daycare, grooming, and dog walking, can be offered to employees through payroll deductions or negotiating provider discounts. Another option is to allow employees to expense these services through a funded personal spending or wellness account.

The changing landscape of US workplaces is driving a shift in the types of benefits employees want. Post-COVID, employees are prioritizing their well-being, and for many, that means owning and caring for a pet. In fact, one in five US households welcomed a pet into their home during the pandemic.

In response to the growing trend of pet ownership, many employers are exploring ways to enhance their benefits programs to better support their employees.

In the highly competitive US job market, organizations aim to offer benefits that differentiate them from competitors, strengthen their brand, and enhance the appeal of their total rewards program to both current and potential employees.

A recent US survey by Nationwide found that nearly one-third of pet owners said they would be more likely to stay at an employer that offered pet benefits. Another survey found that more than 40% of US pet owners would take a pet cut for a more pet-friendly job.

Vetster for Business is an excellent solution for US employers looking to meet the growing demand for pet-focused workplace benefits. With 24/7 access to top-rated, licensed veterinarians, employees can get high-quality care for their pets when they need it. The Vetster app helps employees easily manage their pet's care wherever they are, whether it's at home, in the office, or on the go.

This affordable benefit has been shown to reduce employee absenteeism, boost job satisfaction, and help employees manage rising veterinary costs. Vetster’s pet benefits program also lowers operating costs for employers.

Employees who use the Vetsrter platform report loving the veterinarians' expertise and attentiveness, the user-friendly app interface, and the convenience of virtual pet care. They also enjoy seamlessly having prescriptions filled online by Vetster partners and the personalized follow-up content they receive that is tailored to their pets' needs.

In addition to benefits, employers in the US often also provide perks to support employee well-being. While benefits are usually formal, structured, and sometimes mandatory, perks are optional incentives that improve the employee experience but aren’t a core component of their compensation package.

Some of these include:

Recognition: Many employers are now celebrating significant life events for their employees, such as the arrival of a new baby, marriage, or even a new pet, by offering gifts.

Employee discounts: Large companies often have the ability to negotiate special discounts on services like hotel stays, car rentals, flights, and even secure preferred rates on car and home insurance.

Employee rewards: Dedicated platforms, such as Achievers in the US, offer fully managed rewards programs that provide employees with exclusive, high-value discounts and perks.

Healthy living perks: Employers may allocate a fund that employees can use for health-related expenses not covered by their benefits, including gym memberships, fitness classes, bikes, and more.