Employers Spent More On Benefits In 2003

American businesses remained committed to providing benefits to employees in 2003, increasing their spending over the previous year, a U.S. Chamber of Commerce survey of its members showed.

The average benefits expenditure per employee rose to $18,358 in 2003, from $18,000 in 2002, according to the survey of nearly 600 companies. Broken down by benefit type, employers spent an average of $5,653 on medical insurance, $4,932 on paid time off, and $3,303 on retirement and savings.

On average, employee benefit costs accounted for 37.6% of payroll for the companies surveyed. The study also found that, at 40.1%, manufacturing companies spent a slightly higher percentage of payroll on benefits than other types of businesses.

The most commonly offered benefits were medical, paid holidays and vacation, and retirement plans. Health insurance was the most expensive benefit, representing an average of 11.6% of payroll among the companies surveyed.

"Employers are continuing to offer their workers a broad range of benefits in order to maintain a strong workforce despite the rising cost," said Bruce Josten, Chamber executive vice president.