Benefits for government workers and federal employees

When you work in the public sector, whether you’re a federal postal worker, state employee, or local city staffer, your compensation goes far beyond a paycheck.

Your government employee benefits package is one of the most valuable parts of your total rewards. It protects your health, your family, and your future.

But benefits can be confusing to navigate. 

What exactly do you get? How does it compare to the private sector? And are there hidden perks you might be missing. 

Let’s break it all down so you can understand your plan and make the most of what you’ve earned.

What are government employee benefits?

In simple terms, your government employee benefits are all the non-wage perks you receive through your public employer. These might come from the federal level, your state, your county, or your local municipality.

Government Employee Benefits often include:

• Health insurance and medical coverage for you and your dependents
• Pensions or retirement savings
• Paid time off, holidays, and parental leave
• Disability protection and life insurance
• Wellness perks like gym discounts, mental health support, or virtual physical therapy

These benefits protect your financial well-being and your quality of life but only if you know what’s included and how to use them.

Common employee benefits for US government workers

Let’s look at the main categories of benefits you can expect if you work in a public sector role.

Government healthcare and medical insurance

Do government employees get healthcare benefits?Yes, most government employees in the US have strong healthcare coverage. Depending on your employer, you may be part of the Federal Employees Health Benefits (FEHB) Program or your state’s group health plan.

Coverage typically includes:

• Doctor visits, hospital stays, and prescription drugs.
• Preventive screenings like annual physicals, vaccines, and labs.
• Mental health services, therapy, and EAPs.
• Specialized care like physical therapy for musculoskeletal (MSK) conditions.

Some government plans now cover digital-first care for chronic back, neck, or joint pain. Sword Health, for example, partners with major plans, meaning your MSK recovery may be covered at no extra cost.

Don’t wait for pain to become surgery. See if your plan includes virtual MSK care that can help you heal faster and avoid costly procedures.

Federal employee retirement plans and government pensions

Many public sector workers enjoy pension plans. This is often a major reason why people stay in government jobs for decades. There are two common types of 

Defined benefit: guaranteeing you a set monthly amount based on your years of service and salary 

Defined contribution plan: where you and your employer both contribute to a retirement account as you work

Check your plan’s vesting rules and understand how your pension grows over time. Some US states offer hybrid options that combine both defined benefit and defined contribution plan types.

Knowing how your pension works today will help you plan for a secure future.

Paid annual leave and holidays for government employees

Most US government workers get a collection of leave benefits. This can vary by state and government department in some cases.

Paid annual leave: Federal employees accrue annual leave based on their length of service. 

• Up to 3 years of service: 13 days per year
• Between 3 to 15 years of service: 20 days per year 
• 15 or more years of service: 26 days per year

Paid federal/state holidays: Federal employees also receive 11 paid federal holidays

Sick leave: US federal government employees accrue 4 hours of sick leave during each pay period, which translates to 13 days each year for a full-time employee. This leave can be used for your own personal illness, injury, or medical appointments, and for care of an immediate family member.

Parental or family leave: varies by state, but many agencies now offer paid time off for new parents or caregivers. The Federal Employee Paid Leave Act (FEPLA) allows eligible employees to substitute up to 12 weeks of annual leave for unpaid FMLA leave in connection with the birth or placement of a child. The Family and Medical Leave Act (FMLA) is a federal law allowing eligible employees to take unpaid, job-protected leave for specified family and medical reasons.

Make sure you understand your leave policies as unused time off may be lost or could roll over, depending on your plan. Most US government employees are able to roll over up to 240 hours of annual leave into the next year.

Disability and life insurance for government employees

Many government benefits packages include:

• Short-term disability insurance: to cover a portion of your income if you can’t work temporarily due to illness or injury
• Long-term disability: as above but for extended periods of time lost due to disability
• Group life insurance: often free up to a base level, with options to buy more

These protections help your family stay financially secure if you’re unable to work.

Supplemental and wellness benefits

Many federal agencies now offer:

• Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs) for out-of-pocket medical costs.
• Wellness programs: Gym discounts, wellness coaching, or mental health apps.
• Physical therapy and MSK care: Musculoskeletal health care and physical therapy programs are now included in many public plans. Check if your plan includes coverage for digital physical therapy from a provider like Sword Health. With Sword, you can recover from injury and pain from the comfort of home with the support of licensed physical therapists and no commute.

Even if you never use your core health insurance, these extra perks can keep you healthier and save you money.

Unique perks for government employees

Your benefits don’t stop with health insurance and pensions. Here are a few extras that can make a big difference:

Job security and tenure protections: public sector jobs often come with stronger labor protections than private employers.

Tuition reimbursement or student loan perks: many agencies help employees pay for continuing education — and you may qualify for Public Service Loan Forgiveness (PSLF).

Flexible work arrangements: remote work, compressed workweeks, or flex schedules are increasingly common.

These perks add up to real-life savings and career growth. Keep in mind that benefits vary widely between federal and state/local jobs.

Federal vs. state and local government benefits

Most federal employees get their healthcare through the FEHB Program, which offers a wide choice of plans, along with dental and vision options. Many also get generous pensions and the Thrift Savings Plan (TSP).

State and local workers may have unique perks through systems like CalPERS (California Public Employees' Retirement System) or other state-specific pension funds. Some states provide better family leave, while others offer extra wellness credits.

Rural and remote state or county workers may face care access barriers and that’s where digital-first solutions like Sword are so valuable.

No two benefit packages are exactly the same. Always check your specific plan details and look for hidden coverage you may not realize you have.

How to maximize your government benefits

New to a government job? Or been on the job for years but never reviewed your plan? Here’s how to make sure you’re getting full value:

• Review your plan documents each year: benefits change and open enrollment gives you a chance to switch if a better option exists.
• Use wellness incentives: many plans offer discounts for completing preventive screenings, using virtual care, or logging activity.
• Don’t let pain linger: if you have recurring back or joint pain, see if you’re eligible for digital physical therapy with Sword Health (you may already be covered)
• Tap into Employee Assistance Programs: mental health support often goes unused, but it’s included for most federal and state employees.

Making the most of your benefits helps you stay healthy, avoid big medical bills, and care for yourself and your family.

Comparing government benefits with private-sector jobs

Government jobs sometimes pay less in base salary than similar private roles, but the trade-off can be better job security, pension plans, and stronger healthcare coverage.

For many, that balance is worth it. A strong benefits package gives you financial security, especially as you get older or if you have dependents.

Knowing the full value of your total compensation helps you make informed career choices. 

Recent trends in government health benefits plans

Many public employers are modernizing benefits:

• Adding more virtual care and telehealth options.
• Expanding mental health support.
• Improving access for hybrid or remote workers.
• Adding new wellness incentives to help you stay healthy and reduce long-term costs.

Keeping up with changes helps you get ahead and catch opportunities to take full advantage of your benefits.

So how do you take the next step if you’re dealing with chronic pain or looking for ways to stay healthier?

See if Sword’s digital physical therapy is covered by your health plan and banish your pain for good

If you’re living with chronic or recurring pain, you don’t have to wait for surgery or spend hours driving to a clinic.

Sword Health’s digital physical therapy care plans are designed to help people recover from joint and muscle issues from head to toe, even offering a dedicated solution for women with pelvic health conditions. 

Sword offers the most clinically rigorous digital solution in its class, and allows you to work on your recovery plan from the comfort of your own home.

Sword’s Thrive program pairs Doctors of Physical Therapy with Phoenix, our AI Care Specialist, to offer members a personalized experience with real-time feedback from the comfort and convenience of home. Thrive helps members feel better and avoid surgery and ER visits, drastically reducing healthcare costs and saving our clients an industry-leading average of $3,177 per member per year.

Start your recovery now with clinically proven care from the comfort of your home. Many government workers use Sword with no extra cost because it’s already part of their healthcare plan.

It only takes a few seconds to check your eligibility. See if you are covered and get started right away!

FAQs

What are government employee benefits? They’re the non-wage perks you receive through your public employer, like health insurance, pensions, paid leave, and more.

Do government employees get healthcare benefits? Yes. Most federal, state, and local workers in the US have comprehensive medical, dental, and vision coverage for themselves and their families.

Is physical therapy covered? It often is! Many plans even include access to digital physical therapy programs like Sword Thrive so you can treat muscle or joint pain from the comfort of your own home at a time that suits you.

Where can I find my plan details? Check your HR portal or ask your benefits administrator. Look for sections on wellness or musculoskeletal care.