San Francisco, California
San Francisco employer costs: minimum wage, taxes and paid leave
San Francisco sets its own minimum wage, a longer paid sick leave cap and an hourly health care spending requirement. The minimum wage is $19.61 an hour. A $50,000 employee costs a new employer about $62,794 a year here in 2026.
Calculate the cost of an employee in San Francisco
Estimates for planning, not tax or legal advice. Rates change and some depend on your business; confirm yours with your state agencies, insurer or payroll provider.
San Francisco employer rules on top of California's
What San Francisco adds, then the federal and California lines every employer here pays. The full California breakdown is on the state page.
- San Francisco minimum wage
$19.61 in 2026
$19.61 an hour (From July 1, 2026).
per San Francisco Office of Labor Standards Enforcement, as of Jul 1, 2026
- Health Care Security Ordinance spending requirement
$2.74–$4.11 an hour
Employers with 20 or more workers must spend a set amount per hour on health care for employees who work at least 8 hours a week in San Francisco; the employer’s own health contributions count toward it.
per San Francisco Office of Labor Standards Enforcement, as of Jan 1, 2026; per San Francisco Office of Labor Standards Enforcement, as of Jan 1, 2027
- San Francisco paid sick leave
72 hours a year
One hour per 30 hours worked; employers with 10 or more employees must allow at least 72 hours to accrue.
per San Francisco Office of Labor Standards Enforcement, as of Jan 1, 2024
- Social Security and Medicare
7.65% of pay
The employer matches the employee: 6.2% Social Security on pay up to $184,500 in 2026 ($192,300 in 2027) and 1.45% Medicare on all pay.
per Social Security Administration, as of Jan 1, 2026
- Federal unemployment tax (FUTA)
2.1% of $7,000
6% of the first $7,000, less the 5.4% credit for paying state unemployment tax, plus California's potential 2026 credit reduction of 1.5%: $147 per employee. The final reduction is set on November 10, 2026.
per Internal Revenue Service, as of Jan 1, 2026; per U.S. Department of Labor, Employment and Training Administration, as of Nov 10, 2026
- California unemployment insurance (SUTA)
3.4% of $7,000
New employers pay 3.4% on the first $7,000 of each employee's pay in 2026. After two to three years the rate follows your own claims history.
per California Employment Development Department, as of Jan 1, 2026
Checked against each source on Oct 23, 2026.
Two worked examples in San Francisco
Both for a new employer with 10 employees in a general industry in 2026, with single health coverage at the state average.
Salaried employee at $50,000
A $50,000 salary, 40 hours a week.
| Pay for hours worked2,011 hours | $48,341 |
|---|---|
| Paid sick leave required by law69 hours | $1,659 |
| Social Security (employer share)6.2% of $50,000 | $3,100 |
| Medicare (employer share)1.45% of $50,000 | $725 |
| FUTA (with credit reduction)2.1% of $7,000 | $147 |
| State unemployment insurance (new employer)3.4% of $7,000 | $238 |
| Employment Training Tax0.1% of $7,000 | $7 |
| Workers' compensation (state index rate)$1.86 per $100 of payroll | $930 |
| Health insurance (single coverage, state average)average employer contribution | $7,647 |
| Total cost a year | $62,794 |
25.6% on top of pay · $31.23 per hour worked
Hourly employee at $20 an hour
$20 an hour for 40 hours a week, 52 weeks.
| Pay for hours worked2,011 hours | $40,220 |
|---|---|
| Paid sick leave required by law69 hours | $1,380 |
| Social Security (employer share)6.2% of $41,600 | $2,579 |
| Medicare (employer share)1.45% of $41,600 | $603 |
| FUTA (with credit reduction)2.1% of $7,000 | $147 |
| State unemployment insurance (new employer)3.4% of $7,000 | $238 |
| Employment Training Tax0.1% of $7,000 | $7 |
| Workers' compensation (state index rate)$1.86 per $100 of payroll | $774 |
| Health insurance (single coverage, state average)average employer contribution | $7,647 |
| Total cost a year | $53,595 |
28.8% on top of pay · $26.65 per hour worked
What changes in 2027
- The health care spending rates rise to $2.99 and $4.49 an hour on January 1, 2027. per San Francisco Office of Labor Standards Enforcement, as of Jan 1, 2027
- The Social Security wage base rises from $184,500 to $192,300: up to $484 more employer tax for employees paid above it. per Social Security Administration, as of Jan 1, 2027
- California's minimum wage becomes $17.40 an hour on January 1, 2027. per California Department of Industrial Relations, as of Jan 1, 2027
Only changes already official on Oct 23, 2026. Most states publish next year's unemployment insurance rates in November and December; this page is updated when they do.
Frequently asked questions
When does the San Francisco minimum wage change?
San Francisco's $19.61 rate (from july 1, 2026) is the latest published by Oct 23, 2026.
What is the minimum wage in San Francisco in 2026?
$19.61 an hour in San Francisco (from july 1, 2026), or $2.71 above California's $16.90.
How much does an employee cost in San Francisco?
$62,794 a year for a $50,000 employee in San Francisco (new employer, 10 staff), 25.6% above pay.
What payroll taxes do employers pay in San Francisco?
Health Care Security Ordinance spending requirement on top of $4,217 of federal and California payroll taxes on a $50,000 salary.
Is paid sick leave required in San Francisco?
Yes. One hour per 30 hours worked; employers with 10 or more employees must allow at least 72 hours to accrue.
What does a minimum-wage employee cost in San Francisco?
$52,707 a year at $19.61 an hour full time in San Francisco: $26.21 per hour worked.
How does the San Francisco health care spending requirement work?
Employers with 20 or more workers must spend a set amount per hour on health care for employees who work at least 8 hours a week in San Francisco; the employer’s own health contributions count toward it. In 2026 the required rate is $2.74 an hour for employers with 20 to 99 workers and $4.11 with 100 or more, rising to $2.99 and $4.49 on January 1, 2027.
More employer cost pages
California
Other cities with their own rules
Software and services for these costs
- Payroll Software
Calculates and files these payroll taxes for every state you hire in.
- PEO Services
Takes on payroll taxes, workers' comp and benefits, often at group rates.
- Benefits Administration
Runs the health plan and leave programs behind the benefits lines.
Benefits and workers’ comp are most of this cost
A PEO pools employers for health insurance and workers’ comp, often at group rates. Compare PEOs we research, with verified prices and features.