FOR RELEASE 10:00 A.M. (EDT) WEDNESDAY, DECEMBER 7, 2011 USDL-11-1718
Technical information:
(202) 691-6199 NCSinfo@bls.gov http://www.bls.gov/ect
Media contact:
(202) 691-5902 PressOffice@bls.gov
EMPLOYER COSTS FOR EMPLOYEE COMPENSATION - SEPTEMBER 2011
Employer costs for employee compensation averaged $30.11 per hour worked in September 2011, the
U.S. Bureau of Labor Statistics reported today. Wages and salaries averaged $20.91 per hour worked
and accounted for 69.4 percent of these costs, while benefits averaged $9.21 and accounted for the
remaining 30.6 percent. Total employer compensation costs for private industry workers averaged
$28.24 per hour worked in September 2011.
Employer Costs for Employee Compensation (ECEC), a product of the National Compensation Survey,
measures employer costs for wages, salaries, and employee benefits for nonfarm private and state and
local government workers.
Compensation costs in state and local government
State and local government employers spent an average of $40.76 per hour worked for employee
compensation in September 2011. Wages and salaries averaged $26.57 per hour and 65.2 percent of
compensation costs, while benefits averaged $14.19 per hour worked and accounted for the remaining
34.8 percent. Total compensation costs for management, professional, and related occupations, which
represent approximately half of all state and local government employment, averaged $49.37 per hour
worked. Average hourly compensation costs were $30.86 for service occupations and $28.49 for sales
and office occupations. (See chart 1.)
For state and local government employees, employer costs for insurance benefits were $4.89 per
hour, or 12.0 percent of total compensation. The largest component of insurance costs was health
insurance, which averaged $4.74, or 11.6 percent of total compensation. (See chart 2.)
In September 2011, the average cost for retirement and savings benefits was $3.42 per hour worked
in state and local government (8.4 percent of total compensation). Included in this amount were
employer costs for defined benefit plans, which averaged $3.10 per hour (7.6 percent), and defined
contribution plans, which averaged 33 cents (0.8 percent). Defined benefit plans specify a formula
for determining future benefits, while defined contribution plans specify employer contributions but
do not guarantee the amount of future benefits.
Two components of benefit costs are paid leave and legally required benefits. Paid leave benefit
costs include vacation, holiday, sick leave, and personal leave. The average cost for paid leave was
$3.03 per hour worked for state and local government employees. Costs for legally required benefits,
including Social Security, Medicare, unemployment insurance (both state and federal), and workers’
compensation, averaged $2.50 per hour worked.
The National Compensation Survey produces data on the percentage of state and local government
workers with access to and participation in employee benefit plans, including health and retirement and
savings plans. Detailed data on health and retirement plan provisions are available at
http://www.bls.gov/ebs.
Table A. Relative importance of employer costs for employee compensation, September 2011
Compensation Civilian Private State and local
component workers industry government
Wages and salaries 69.4% 70.5% 65.2%
Benefits 30.6 29.5 34.8
Paid leave 6.9 6.7 7.4
Supplemental pay 2.4 2.8 0.8
Insurance 8.9 8.1 12.0
Health benefits 8.4 7.6 11.6
Retirement and savings 4.6 3.6 8.4
Defined benefit 2.8 1.6 7.6
Defined contribution 1.8 2.0 0.8
Legally required 7.8 8.3 6.1
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The Employer Costs for Employee Compensation for December 2011 is scheduled to be released
on Wednesday, March 14, 2012, at 10:00 a.m. (EDT).
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Employer Costs for Employee Compensation data on total compensation, wages and salaries, and
benefits in private industry are produced annually in the March reference period for 15 metropolitan
areas. The most recent metropolitan area data were included in the March 2011 news release published
in June 2011. For further information about metropolitan area ECEC estimates see: "BLS Introduces
New Employer Costs for Employee Compensation Data for Private Industry Workers in 15 Metropolitan
Areas," at http://www.bls.gov/opub/cwc/cm20090921ar01p1.htm.
Supplemental tables with occupational, establishment size, and bargaining status series for
detailed industries are available at http://www.bls.gov/ncs/ect/sp/ecsuphst.pdf and
http://www.bls.gov/ncs/ect/sp/ecsuptc20.pdf.
Relative standard errors for all cost estimates in the most recent news release and supplementary
tables are available at ftp://ftp.bls.gov/pub/special.requests/ocwc/ect/ececrse.pdf and
http://www.bls.gov/ncs/ect/sp/ecsuprse.pdf.
Historical ECEC data are available in three listings, all available at
http://www.bls.gov/ect/#tables. The first historical listing covers data for the March reference
periods from 1986 to 2001. These data use the Standard Industrial Classification (SIC) and Census
of Population occupational classification systems. A second listing contains data for the March,
June, September, and December reference periods from March 2002 to December 2003. These data are also
based on the SIC and Census of Population occupational classification systems. The most recent
listing includes data for March 2004 to the current reference period. These are based on the North
American Industry Classification System (NAICS) and Standard Occupational Classification (SOC) systems.
Information in this release will be made available to sensory impaired individuals upon
request— Telephone: (202) 691-5200; Federal Relay Service: (800) 877-8339.
BLS news releases, including the ECEC, are available through an e-mail subscription service at:
www.bls.gov/bls/list.htm.
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