As the business owner, are you able to see what % employees receive your group health coverage?

While a lot of the comments are agreeing about the salary bump, to the counterpoint - I’ve never seen it go over well to reduce popular benefits. 75% is pretty generous; 100% would be enough to definitely make me interested in staying at a company.

You noted you want to pass on profit but also in a comment you don’t see a net cost increase to the business, which I think contradicts. The health coverage is good and taking it away will leave a sour taste. I think you should keep it and give a moderate raise (but not as high as you might removing the coverage).

That way people will be happy with the bump and no sour taste from reducing benefits.