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Economic News Release
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Employer Costs for Employee Compensation Technical Note

                                          TECHNICAL NOTE

Employer Costs for Employee Compensation (ECEC), a product of the National Compensation Survey,
provides the average employer cost for wages and salaries as well as benefits per employee hour
worked. The ECEC covers the civilian economy, which includes data from both private industry and
state and local government. Excluded from private industry are the self-employed, agricultural
workers, and private household workers. Federal government workers are excluded from the public
sector.

All workers are included in the benefit cost estimates including those that do not have plan access
or do not participate. Costs are also affected by other factors such as cost sharing between
employers and employees, plan features, and plan generosity. For the latest information on the
percentage of workers with access to and participating in employer-sponsored benefit plans,
including health care and retirement and savings plans, see www.bls.gov/ebs.

The “National Compensation Measures” provides additional details on the sample design, calculation
methodology, and resources explaining changes over time. (See www.bls.gov/opub/hom/ncs/home.htm.)
 
Additional ECEC estimates, including historical data, are available in the ECEC database query tool
at www.bls.gov/ncs/ect/data.htm.

Sample size:
Data for this reference period were collected from a probability sample of approximately 24,600
occupational observations selected from a sample of about 6,000 private industry establishments
and approximately 7,800 occupational observations selected from a sample of about 1,400 state and
local government establishments that provided data at the initial interview.

Measures of reliability:
Relative standard errors (RSEs) provide users a tool to ascertain the quality of an estimate to
ensure that it is within an acceptable range for their intended purpose. RSEs are available at
www.bls.gov/ncs/ect/ecec-rse.htm and database query tool at www.bls.gov/ncs/ect/data.htm.

Comparisons:
Compensation cost levels in state and local government should not be directly compared with levels
in private industry. Differences between these sectors stem from factors such as variation in work
activities and occupational structures.

Area definitions:
Metropolitan area definitions have been updated based on Office of Management and Budget Bulletin
No. 13-01, dated February 28, 2013. (See www.census.gov/programs-surveys/metro-micro.html.)

Publication focus:
Topics of news releases for the upcoming reference periods are as follows:
* March 2021 – compensation costs by wage percentile and 15 metropolitan areas in private industry
* June 2021 – benefits costs in private industry
* September 2021 – compensation costs in state and local government


The 2021 ECEC release dates are available at www.bls.gov/schedule/news_release/ecec.htm.

Table of Contents

Last Modified Date: March 18, 2021