Working part-time used to mean sacrificing the standard perks and protections of full-time employees. However, that landscape has shifted dramatically. Many part-time workers now have access to comprehensive benefits packages that can even rival their full-time counterparts.
From health insurance to retirement plans, offering great benefits helps employers stand out in an increasingly competitive part-time job market. Companies that offer benefits to more employees tend to find themselves with deeper, more loyal talent pools and a better workplace culture.
Part-time benefits vary widely based on company policies, local regulations, and industry practices. This guide breaks everything down, from basic eligibility requirements to the most common benefits available today.
How many hours is part-time?
Defining part-time employment involves a little more nuance than many people realize. Part-time employees usually work fewer hours per week than full-timers, but the exact threshold varies depending on who you ask.
Many insurance carriers align with the IRS definition, typically requiring employees to work at least 30 hours per week to qualify for health insurance and other employee benefits.
These are the official guidelines, but employers have a lot of flexibility in defining part-time status for their companies. A common standard of minimum hours for part-time employment is 20 hours per week, though this might shift based on industry needs and business requirements. Retail stores and restaurants, for instance, often adjust part-time hours per week to accommodate seasonal rushes and varying customer demand.
The maximum number of hours for part-time workers typically stays below the full-time employee threshold, but this cap can differ between companies. Some employers might consider 25 hours per week part-time, while others draw the line at 32 hours. This flexibility allows businesses to structure their workforce in ways that best serve their operational needs while remaining compliant with relevant regulations.
Common benefits available to part-time employees
Do part-time employees get benefits? And if so, what kind?
The benefits employers offer part-timers in the modern workplace are similar to benefits for full-time employees, often with some minor adjustments. Some are required by law, some are optional, and some are mixed.
Let's take a look at the optional side:
Health insurance and medical coverage
While the
Affordable Care Act (ACA) doesn't require health insurance coverage for part-time employees in most situations (with one exception covered in the next section), many employers choose to offer it anyway. This is a big shift from the days when they were only for full-time employees.
Basic health insurance plans for part-time employees usually cover the essentials: doctor visits, hospital stays, and prescriptions. To keep costs down while still providing good care, some employers offer telemedicine options to their part-time employees. These virtual healthcare options often cost less than traditional insurance plans.
Many employers opt for dental and vision insurance for part-time employees instead of or in addition to health insurance, since these are usually much more affordable. Including wellness programs and health apps as part of your benefits packages is a nice bonus for employees, as it demonstrates your company’s commitment to their overall well-being and can lead to increased satisfaction and productivity.
Flexible work
Letting part-time workers build flexible schedules is a clear benefit. After all, that's a major reason people choose part-time work over full-time work in the first place. Plus, remote work is becoming more common too when the job allows for it. Some companies even offer coaching and mentoring to help part-time employees grow their careers.
Financial wellness
Given that
78% of Americans live paycheck-to-paycheck, employee demand for financial wellness benefits is on the rise. Benefits like
EarnIn can help address this need by providing features such as
Earned Wage Access, Credit Monitoring
, and Early Pay
. These tools empower employees to help manage their finances more effectively, budget wisely, and build healthy financial habits.
Educational support and professional growth
Employers can help their part-time employees level up their skills through education benefits, like subsidizing tuition or funding professional certifications. It's a win-win: Employees keep learning while working flexible hours.
Required benefits for part-time employees
While offering extra perks to part-time staff is great for business, some employee benefits aren't optional. Here's what you need to know about:
Workers compensation insurance
Every business needs to carry workers comp insurance for all employees, whether full-time or part-timers — no exceptions. It doesn't matter if someone works 10 hours per week or 30 hours per week. This coverage protects both your business and your employees if someone gets hurt on the job, and that can happen anytime.
Mandatory health insurance
If you're a larger employer (with over 50 full-time employees), you're
required by the ACA to provide health insurance for full-time or part-time employees who work an average of 30 hours per week or 130 per month. That means you might have to extend health benefits to workers you consider part-timers based on your internal policies.
Unemployment benefits
The rules for unemployment vary from state to state, but qualifying is usually based on part-timers' hours, earnings, and reason for leaving (like voluntarily quitting or being laid off). Some states ask employers to sign up for specific programs, while others handle everything through their regular state systems.
Retirement plans
The retirement landscape has changed for part-time employees.
Thanks to the SECURE Act, employers now have to include long-term part-timers in their 401(k) plans if they work at least 500 hours for three years straight and are 21 or older. Considering
almost half of American adults don't have any retirement savings, this benefit can really make a difference.
If you have a defined benefit plan — a common type of plan where participants get a specified monthly benefit after retirement — you'll also need to make part-time employees eligible
if they work 1,000 hours a year.
Sick leave requirements
Paid sick leave for part-time workers is becoming law in more places. The goal is to balance part-time employees’ needs without putting too much strain on employers.
Advantages of offering benefits to part-time employees
Investing in part-time workers pays off in many ways. Here's how it can strengthen your business and increase your bottom line:
Enhancing employee engagement and loyalty
Making part-time employees eligible for comprehensive benefits packages makes them more likely to feel valued and committed to their work. These employees tend to go the extra mile, take more initiative, and stick around longer than those who just collect a paycheck.
Attracting a broader talent pool
Benefits can help you tap into talent pools you might otherwise miss. Parents returning to work, semi-retired professionals, and skilled workers seeking flexibility often look for part-time positions that include health insurance and other key employee benefits.
Standing out in a competitive job market
Extending benefit eligibility to part-time workers helps your job listings catch attention. When other employers limit incentives to full-time employees, providing perks like health insurance and retirement plans to part-timers can make your company the employer of choice in your market.
Reducing turnover and associated costs
Replacing employees is expensive. When part-time workers are eligible for good employee benefits, they're less likely to jump ship for another job. That means you spend less time and money on hiring and training replacements.
Supporting a positive company culture
When all employees are eligible for benefits, it creates a more unified workplace. This approach avoids the "second-class citizen" feeling that part-time workers sometimes experience and builds a stronger, more inclusive culture.
Improving employee well-being
Employee well-being, encompassing physical, mental, and financial health, is crucial for a thriving workforce. When employees have access to comprehensive benefits, such as health insurance, mental health support, and financial tools like EarnIn, they are better equipped to maintain their health, manage finances, and reduce stress. This leads to increased productivity, reduced absenteeism, and a more engaged workforce.
Empower your part-time team with EarnIn
Giving your employees impactful benefits doesn't have to be expensive. EarnIn’s Earned Wage Access solution lets you provide your team with the financial flexibility they deserve at no cost to your company. Employees can access their pay the same day they work, starting at $2.99 per transfer to their bank account, with the ability to get up to $150 per day, with a max of $750 between payday.
Additionally, EarnIn offers a suite of wellness tools, including Credit Monitoring and Tip Yourself, to help support long-term financial health, making your benefits package even more impactful. By including EarnIn, you’re not just supporting your part-time team’s financial needs. You’re building a workplace where everyone feels valued and engaged.
Please note, the material collected in this post is for informational purposes only and is not intended to be relied upon as or construed as advice regarding any specific circumstances. Nor is it an endorsement of any organization or services.
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Early Pay is an optional feature that requires you to open a Deposit Account with Evolve Bank & Trust, Member FDIC and update your direct deposit routing with your employer. This Deposit Account will receive your paycheck and will redirect it to the bank account you link to your EarnIn account. EarnIn will set aside the necessary funds from your paycheck to cover any tips, Lightning Speed fees, and Cash-Out balances from the previous pay period. Any remaining funds will be sent to your linked bank account. If you opt for Lightning Speed transfers, Evolve Bank & Trust will charge you a $2.99 fee to transfer your paycheck to your linked bank account on the same day your employer processes payroll, which may be up to 2 days before your scheduled payday. If you do not opt for Lightning Speed transfers, Evolve Bank & Trust will automatically transfer your paycheck to your linked bank account for free, by your regular payday. Early Pay is available to eligible EarnIn members in select states, and additional restrictions may apply. For more information, please refer to our
FAQ.
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here.
