March 22, 2018
U.S. Bureau of Labor Statistics reported on March 20,2018 that employer costs for employee compensation averaged $35.87 per hour worked in December 2017. Wages and salaries averaged $24.49 per hour while benefit costs averaged $11.38.The average compensation for state and local government is higher than that of private industry. Total employer compensation costs for state and local government workers averaged $49.19 per hour worked in December 2017, versus an averaged compensation of $33.72 per hour worked for private industry workers.
Supplemental pay benefit costs in private industry
Supplemental pay includes employer costs for employee nonproduction bonuses, overtime and premium pay, and shift differentials. Nonproduction bonuses such as holiday bonuses and cash profit sharing are given at the discretion of the employer and not tied to a production formula. Overtime and premium pay includes pay for work in addition to the regular work schedule. Shift differentials are extra payments for working a non-traditional work schedule.
- Supplemental pay costs for private industry workers in December 2017 averaged $1.28 per hour worked or 3.8 percent of total compensation.
- Private industry employers spent an average of 92 cents per hour worked or 2.7 percent of total compensation on nonproduction bonuses. Costs for nonproduction bonuses by major industry group ranged from 8 cents for leisure and hospitality to $3.47 for financial activities industry workers.
- Private industry employers spent an average of 29 cents per hour worked or 0.9 percent of total compensation on overtime and premium pay.
- Private industry employers spent an average of 7 cents per hour worked or 0.2 percent of total compensation on shift differentials.
- Supplemental pay costs by major occupational group ranged from 31 cents per hour worked for service workers to $2.85 per hour worked for management, professional, and related workers.
- Supplemental pay costs for part-time workers (29 cents) were significantly lower than full-time workers ($1.62).
Private industry employer costs for paid leave averaged $2.36 per hour worked or 7.0 percentof total compensation, supplemental pay averaged $1.28 or 3.8 percent, insurance benefits averaged $2.70 or 8.0 percent, retirement and savings costs averaged $1.29 or 3.8 percent, and legally required benefits averaged $2.62 per hour worked or 7.8 percent.
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