Introduction: Ethiopia recently embarked on an initiative to provide social and community-based health insurance throughout the country. Social health insurance is one of the possible organisational mechanisms for raising and pooling funds to finance health services. It is necessary to carry out this study so as to establish baseline information on Willingness to Pay for Social Health Insurance and associated factors in Muja town. Objective: To assess Willingness to pay for social health insurance and associated factors among government employees in Mujja town, north east Ethiopia Methods: An institutional- based cross-sectional study was conducted on Willingness to Pay for Social Health Insurance and associated factors among employees working in Mujja, national and regional state of Amhara, north east Ethiopia. Stratified sampling was used to get the total sample size of 375. The quality of data was assured by proper designing and pre-testing of the questionnaires, training was given for both data collectors and supervisors and every day after data collection, questionnaires were reviewed and checked for completeness, then coded and entered into EPI info version 7 and was transferred to SPSS version 20.0 soft ware packages for data analysis. Result: - Three hundred seventy five employees participated in the study with response rate of 100%. About 14.4% of the employees had ever heard about health insurance scheme. However, 37.6% of respondents were willing to pay for the suggested insurance scheme. Willingness to pay was more unlikely among those who never heard about health insurance, had no previous history of inability to pay for medical bills and having other source to cover medical bill. Conclusion: - Above one third of the respondents were willing to pay for social health insurance; however, adequate awareness creation and discussion should be made with all employees at various levels for the successful implementation of the scheme. Key words: - Social health insurance, willingness to pay, willingness to join, Mujja town