An employer match is money your company contributes to your 401(k) based on what you put in — often 50–100% of your contributions up to a set percentage of your salary. It's part of your total compensation, and leaving it on the table is leaving money behind.
An employer match is a contribution your company makes to your 401(k) on top of what you contribute yourself. It's typically expressed as a percentage of your contribution up to a cap — for example, "50% of contributions up to 6% of salary." If you earn $60,000 and contribute 6% ($3,600/year), your employer adds 50% of that, or $1,800 — an immediate 50% return before any investment gains. Employer matches are governed by ERISA.
There is no standard formula — each employer sets its own match. Common structures include: dollar-for-dollar up to a cap (e.g., 100% of contributions up to 4% of salary); partial match (e.g., 50% of contributions up to 6% of salary); or a tiered match (100% on the first 3%, then 50% on the next 2%). Some employers offer a discretionary match that varies year to year. Check your Summary Plan Description (SPD) — employers are required by law to provide one.
Employer contributions are often subject to a vesting schedule — meaning you only keep the matched funds if you stay with the employer long enough. Common structures are cliff vesting (you own 0% until a set date, then 100%) and graded vesting (you gain ownership incrementally over several years). ERISA sets maximum vesting periods: cliff vesting must complete within 3 years; graded vesting must be 100% by 6 years. Your own contributions are always 100% yours immediately.
Your Summary Plan Description (SPD) and plan enrollment materials will spell out the exact match formula and vesting schedule. HR or your plan administrator can provide these documents — employers are required under ERISA to furnish them upon request.