Benefits were 31.7 percent of total compensation in December 2017, BLS finds

Employer-provided benefits costs for civilian workers in private industry and state and local governments in December 2017 averaged $11.38 per hour worked, accounting for 31.7 percent of total compensation costs, which averaged $35.87 per hour worked. The cost of benefits as a percentage of compensation has risen over the past several years from 27.4 percent of total compensation. These are among the findings of the December 2017 Employer Costs for Employee Compensation report, produced quarterly by the Bureau of Labor Statistics (BLS).

Insurance benefits costs averaged $3.14 per hour, or 8.7 percent of total compensation, in December 2017, representing the largest nonwage employer cost. Legally required benefits costs averaged $2.63 (7.3 percent), employer costs for paid leave benefits averaged $2.55 (7.1 percent), and the cost of retirement and savings benefits averaged $1.90 (5.3 percent).

Private industry.

According to the BLS, private industry benefits costs averaged $10.25 per hour in December 2017, accounting for 30.4 percent of total compensation costs, which averaged $33.72 per hour worked. Private industry employer costs for insurance benefits averaged $2.70 (8.0 percent), legally required benefits averaged $2.62 (7.8 percent), paid leave benefits averaged $2.36 per hour worked (7.0 percent), and retirement and savings benefits averaged $1.29 (3.8 percent).

Health care benefits, private industry.

The average cost for health care benefits in private industry was $2.55 per hour worked (7.6 percent of total compensation) in December 2017. Among occupational groups, employer costs for health care benefits ranged from $2.75 (9.8 percent) for production, transportation, and material moving occupations to $1.06 per hour (6.7 percent) for service occupations. Health care benefits for goods-producing industries averaged $3.55 per hour (9.1 percent of total compensation), compared with $2.35 (7.2 percent) for service-producing industries.

State and local governments.

In December 2017, state and local government benefits costs accounted for 37.4 percent of total compensation, or $18.38 per hour worked. Employer costs for insurance benefits averaged $5.82 per hour, or 11.8 percent of total compensation. The largest component of insurance costs was for health insurance, which averaged $5.68 per hour worked, or 11.5 percent of total compensation. The average cost for retirement and savings benefits in state and local governments was $5.65 per hour worked, or 11.5 percent of total compensation. Costs for legally required benefits averaged $2.72 per hour worked, or 5.5 percent of total compensation.

SOURCE: http://www.bls.gov/news.release/ecec.toc.htm
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