Employer Costs for Employee Compensation news release text


FOR RELEASE 10:00 A.M. (EDT) TUESDAY, SEPTEMBER 18, 2018              USDL-18-1499

Technical information:  (202) 691-6199   ncsinfo@bls.gov    www.bls.gov/ect
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		        EMPLOYER COSTS FOR EMPLOYEE COMPENSATION  JUNE 2018
			
			
Employer costs for employee compensation averaged $36.22 per hour worked in June 2018, the U.S. 
Bureau of Labor Statistics reported today. Wages and salaries averaged $24.72 per hour worked and 
accounted for 68.3 percent of these costs, while benefit costs averaged $11.50 and accounted for the 
remaining 31.7 percent. Total employer compensation costs for private industry workers averaged 
$34.19 per hour worked. Total employer compensation costs for state and local government workers 
averaged $49.23 per hour worked. 

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.  

Highlights of retirement and savings costs in private industry:

  Employer costs for retirement and savings for all private industry workers averaged $1.35 per 
hour worked, or 3.9 percent of total compensation. (See table 5.)  
  Employer costs by occupational group ranged from 28 cents per hour worked (1.8 percent of 
total compensation) for service workers to $2.63 (4.3 percent) for management, professional, and 
related workers. (See table 5.)
  Employer costs by bargaining status were $1.05 per hour worked (3.2 percent of total 
compensation) for nonunion workers and $4.48 (9.3 percent) for union workers. Defined benefit 
costs were significantly higher for union workers at $3.36 (7.0 percent) compared with 30 cents 
(0.9 percent) for nonunion workers. (See table 5.) 
  Among major industry groups, retirement and savings benefit costs ranged from 21 cents per 
hour worked (1.5 percent of total compensation) for leisure and hospitality to $3.56 (6.1 percent) 
for information. (See table 6.)
  Employer costs among Census regions averaged $1.17 per hour worked (3.8 percent of total 
compensation) in the South, $1.22 (4.0 percent) in the Midwest, $1.49 (4.0 percent) in the West, 
and $1.68 (4.0 percent) in the Northeast. (See table 7.)
  Establishments with fewer than 50 workers averaged 68 cents per hour worked (2.4 percent of 
total compensation) for retirement and savings benefits; those with 50-99 workers averaged 
$1.06 (3.4 percent); those with 100-499 employees averaged $1.46 (4.2 percent); and those with 
500 or more employees averaged $2.87 (5.8 percent). (See table 8.)
  Employer costs by work status averaged 40 cents (2.2 percent of total compensation) for part-time 
workers and $1.68 per hour worked (4.2 percent) for full-time workers. Costs for part-time workers 
in service occupations averaged 12 cents (0.9 percent), compared with 46 cents (2.4 percent) 
for full-time workers. (See table 11.)

Benefit costs in private industry

Private industry employer costs for paid leave averaged $2.39 per hour worked or 7.0 percent of total 
compensation, supplemental pay averaged $1.32 or 3.8 percent, insurance benefits averaged $2.72 or 
7.9 percent, retirement and savings averaged $1.35 or 3.9 percent, and legally required benefits 
averaged $2.64 per hour worked or 7.7 percent. (See table A and table 5.)

Table A.  Relative importance of employer costs for employee compensation, June 2018

Compensation                            Civilian       Private       State and local
 component                             workers(1)      industry         government
  						       workers		 workers
____________________________________________________________________________________________
Wages and salaries                       68.3%           69.6%            62.4%
Benefits                                 31.7            30.4             37.6
   Paid leave                             7.1             7.0              7.5
   Supplemental pay                       3.3             3.8              1.0
   Insurance                              8.7             7.9             11.9
     Health                               8.2             7.5             11.6
   Retirement and savings                 5.3             3.9             11.5
     Defined benefit                      3.3             1.7             10.7
     Defined contribution                 2.0             2.3              0.8
   Legally required                       7.3             7.7              5.5

____________________________________________________________________________________________
   1 Includes workers in the private nonfarm economy except those in private households, and 
     workers in the public sector, except the federal government.
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Employer Costs for Employee Compensation for September 2018 is scheduled to be released on 
Friday, December 14, 2018, at 10:00 a.m. (EST).

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Last Modified Date: September 18, 2018