Private Industry Paid $6.43/Hour In Average Benefits

The average cost for employee compensation in private industry and state and local governments averaged $24.59 per hour during the final month of 2003, according to a report issued by the Bureau of Labor Statistics of the U.S. Department of Labor.

According to the report, wages and salaries averaged $17.56 per hour and accounted for more than 71% of the compensation cost, while benefits, which averaged $7.03 per hour, accounted for nearly 29% of the hourly cost. Meanwhile, 8% of all benefit costs ($1.96) were earmarked for legally required benefits, such as Social Security, Medicare, unemployment insurance, and workers compensation. Employee costs for paid leave benefits averaged 6.7% ($1.65); life, health, and disability insurance benefits averaged 7.6% ($1.88); and retirement and savings benefits averaged 3.7% (90 cents).

For private industry alone, compensation costs averaged $22.92 per hour, with wages and salaries accounting for nearly 72% ($16.49) and benefits averaging about 28% ($6.43). Employer costs in private industry for insurance benefits averaged $1.62 per hour (7.1%); paid leave $1.48 (6.5%); retirement and savings 70 cents (3.1%); supplemental pay 64 cents (2.8%); and legally required benefits $1.96 (8.6%).

Meanwhile, total compensation for state and local government workers was $33.91, with benefits accounted for 30.5% of total compensation, or $10.35 per hour, while costs for insurance benefits averaged $3.39 per hour, or 10% of total compensation. The largest component of insurance costs for government employees was health insurance, which averaged $3.26 per hour.