Recently, the 2025 San Francisco Health Care Security Ordinance (SF HCSO) expenditure rates were released, which are increased annually and vary based on employer size.
For 2025, medium-sized covered employers must spend $2.56 per hour payable (up to a maximum of $440.32 per month, based on a maximum of 172 hours payable) and large covered employers must spend $3.85 per hour payable (up to a maximum of $662.20 per month, based on a maximum of 172 hours payable) on their covered employees’ health care.
The new 2025 rates, as compared to the 2024 rates, are outlined below:
| 2025 Rates | 2024 Rates | |
| Small Employers (0-19 employees) | Exempt | Exempt |
| Medium Employer (20-99 employees) | $2.56/hour (max $440.32/month) | $2.34/hour (max $402.48/month) |
| Large Employer (100+ employees) | $3.85/hour (max $662.20/month) | $3.51/hour (max $603.72/month) |
As a reminder, SF HCSO requires covered employers to spend a minimum amount on covered employees’ healthcare. For more information on who qualifies as a covered employer, which employees are covered by the ordinance, and other employer obligations under the SF HCSO regulations, we recommend employers review the SF HCSO website, SF HCSO administrative guidance, and accompanying regulations. Please note that Sequoia clients have access to additional guidance and resources on this topic through the Sequoia Platform.
Additional Resources
Connect with a Sequoia consultant to learn how Sequoia’s compliance services are integrated in our benefits services and tailored solutions. And if you’re already a Sequoia client, stay on top of your employer obligations with your Compliance Checklist that highlights important compliance dates, action items, and resources.
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