Two examples of employer contributions are:
- Matching contributions to an employee's retirement plan (e.g., 401(k)), where the employer matches a percentage of the employee's own contributions up to a certain limit. For example, an employer might match 100% of the first 3% of the employee's salary contributed to the plan.
- Contributions toward employee health insurance premiums, where the employer pays a portion of the cost of the employee's health insurance, such as covering 70% of the premium, reducing the employee's out-of-pocket expense.
These contributions provide financial support to employees beyond their regular salary, helping with savings for retirement and healthcare costs.