By Paula Aven Gladych
In December, it cost private industry $2.49 per hour worked to offer Social Security
, retirement and savings benefits to employees, according to the U.S. Bureau of Labor Statistics.
Social Security accounted for $1.39 per hour, or 4.7 percent of total compensation, while retirement and savings benefits accounted for $1.10 per hour, or 3.7 percent of compensation.
Private industry employers spent an average of $29.63 per hour worked for total employee compensation in December, according to BLS. Wages and salaries averaged $20.76 per hour worked and accounted for 70.1 percent of these costs, while benefits averaged $8.87 and accounted for the remaining 29.9 percent.
Total compensation costs for state and local government workers averaged $42.89 per hour worked in December 2013. Total employer compensation costs for civilian workers, which include private industry and state and local government workers, averaged $31.57 per hour worked in December 2013.
According to the BLS, legally required benefits, such as Social Security and Medicare, are often directly linked to wages; therefore, higher paid occupations or industries will typically show higher cost estimates for this compensation component.
Private industry employer costs averaged $2.45 per hour worked for insurance benefits such as life, health and disability, or 8.3 percent of total compensation.
Originally published on BenefitsPro.com