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Hourly employer costs for legally required benefits in private industry averaged $3.08 in June 2023
September 15, 2023
In June 2023, total employer compensation costs for private industry workers averaged $41.03 per hour worked. Wages and salaries averaged $28.97 per hour worked and accounted for 70.6 percent of employer costs, while benefit costs averaged $12.06 per hour worked and accounted for the remaining 29.4 percent.
Employer costs for legally required benefits for private industry workers averaged $3.08 per hour worked in June 2023. Among occupational groups, legally required benefit costs for management, professional, and related occupations were $4.53. Costs for natural resources, construction, and maintenance occupations were $3.84, followed by production, transportation, and material moving occupations ($2.82), sales and office occupations ($2.37) and service occupations ($1.89).
Employer costs for legally required benefits by occupational group, private industry, June 2023
Employer costs for legally required benefits by occupational group, private industry, June 2023
Occupational group
Total legally required benefits
Social Security
Medicare
Workers' compensation
State unemployment insurance
Federal unemployment insurance
All occupations
3.08
1.97
0.48
0.46
0.14
0.03
Management, professional, and related
4.53
3.21
0.82
0.33
0.15
0.03
Natural resources, construction, and maintenance
3.84
2.05
0.48
1.12
0.17
0.02
Production, transportation, and material moving
2.82
1.57
0.38
0.71
0.13
0.03
Sales and office
2.37
1.58
0.38
0.26
0.13
0.03
Service
1.89
1.12
0.26
0.35
0.13
0.03
Employer costs for legally required benefits by occupational group, percent of total compensation, private industry, June 2023
Occupational group
Total legally required benefits
Social Security
Medicare
Workers' compensation
State unemployment insurance
Federal unemployment insurance
All occupations
7.5
4.8
1.2
1.1
0.3
0.1
Management, professional, and related
6.6
4.6
1.2
0.5
0.2
*
Natural resources, construction, and maintenance
8.9
4.7
1.1
2.6
0.4
0.1
Production, transportation, and material moving
8.5
4.7
1.1
2.1
0.4
0.1
Sales and office
7.4
4.9
1.2
0.8
0.4
0.1
Service
9.2
5.4
1.3
1.7
0.6
0.2
* - Less than 0.05 percent.
Legally required benefits accounted for 7.5 percent of private industry workers’ total compensation. The share of total compensation costs attributed to legally required benefits ranged from 6.6 percent for management, professional, and related occupations to 9.2 percent for service occupations.
Legally required benefits for private industry workers in June 2023 included Social Security (averaging $1.97 per hour worked), Medicare ($0.48), workers’ compensation ($0.46), state unemployment insurance ($0.14), and federal unemployment insurance ($0.03).
United States Department of Labor
