Handbook of Methods > Employer Costs for Employee Compensation

Handbook of Methods Employer Costs for Employee Compensation Overview

Employer Costs for Employee Compensation: Overview

The Employer Costs for Employee Compensation (ECEC) measures the average employer’s cost per employee hour worked for total compensation, wages and salaries, benefits, and costs as a percentage of total compensation. Employer costs are available for different benefits, including paid leave vacation, holiday, sick, and personal leave; supplemental pay, including overtime and premium, shift differentials, and nonproduction bonuses; insurance, including life, health, and short-term and long-term disability; retirement and savings, including defined benefit and defined contribution; and legally required benefits, including Social Security, Medicare, federal and state unemployment insurance, and workers’ compensation. These data are collected through the National Compensation Survey (NCS) and provide information about average compensation in the economy at a point in time.

Quick Facts: Employer Costs for Employee Compensation
Subject areas	Pay, Benefits
Key measures	Cost per hour worked Percent of total compensation Compensation percentiles
How the data are obtained	Survey of businesses, Government agencies
Classification system	Standard Occupational Classification System (SOC) North American Industry Classification System (NAICS) Office of Management and Budget (OMB) area definitions
Periodicity of data availability	Quarterly
Geographic detail	Census region, Metro area, National
Scope	State and local government, Private sector
Reference Period	Pay period that includes the 12th of March, June, September, and December
Key products	Employer Costs for Employee Compensation news release
Program webpage	www.bls.gov/ecec

Last Modified Date: September 30, 2025