Employers spend $3.68 per hour for retirement benefits
By Paula Aven Gladych
Employer costs for employee compensation averaged $30.80 per hour worked in September 2012, according to the U.S. Bureau of Labor Statistics. Wages and salaries averaged $21.32 per hour worked and accounted for 69.2 percent of these costs, while benefits averaged $9.48 and accounted for the remaining 30.8 percent.
Total employer compensation costs for private industry workers averaged $28.95 per hour worked in September 2012.
Employer Costs for Employee Compensation, a product of the National Compensation Survey, measures employer costs for wages, salaries and employee benefits for non-farm private and state and local government workers.
The average cost for retirement and savings benefits in September was $3.68 per hour worked in state and local government, or 8.9 percent of total compensation. Included in this amount were employer costs for defined benefit plans, which averaged $3.36 per hour or 8.1 percent, and defined contribution plans, which averaged 32 cents or (0.8 percent) in September 2012.
In September 2002, employer costs for retirement and savings averaged $1.81 per hour worked, or 5.7 percent of total compensation.
State and local government employers spent an average of $41.56 per hour worked for employee compensation in September 2012. Wages and salaries averaged $26.91 per hour and accounted for 64.7 percent of compensation costs, while benefits averaged $14.65 per hour worked and accounted for the remaining 35.3 percent.
Total compensation costs for management, professional, and related occupations, which represent about half of all state and local government employment, averaged $50.43 per hour worked. Average hourly compensation costs were $28.97 for office and administrative support occupations.
For state and local government employees, employer costs for insurance benefits were $5.02 per hour, or 12.1 percent of total compensation. The largest component of insurance costs in September 2012 was health insurance, which averaged $4.86, or 11.7 percent of total compensation. In September 2002, employer costs for health insurance averaged $2.83 per employee hour worked, or 8.9 percent of total compensation.
Originally published on BenefitsPro.com