Benefits share of compensation costs changed little from 1986 to 1998
January 22, 1999
In March 1998, employer costs for employee compensation averaged $18.50 per hour for private industry workers. The compensation package broke down to $13.47 per hour for wages and $5.02 per hour for benefits. The proportion of compensation spent on benefits was about 27 percent—a share that has changed little over the past 12 years.
From 1986 to 1998, the proportion of compensation accounted for by benefits costs has held within the narrow range of 27 to 29 percent. The higher figure was reported in 1993 and 1994, when increases in the cost of health insurance and legally-required benefits, notably workers compensation, pushed the benefits share higher.
Legally-required benefits, including Social Security, were the largest component of benefit costs at about 9 percent. Other benefits with high relative cost shares were paid leave and insurance (mostly health care), each at roughly 6 percent in 1998.
Bureau of Labor Statistics, U.S. Department of Labor, The Economics Daily, Benefits share of compensation costs changed little from 1986 to 1998 on the Internet at https://www.bls.gov/opub/ted/1999/jan/wk3/art04.htm (visited July 20, 2017).
Recent editions of Spotlight on Statistics
Employer-sponsored healthcare coverage across wage groups
A look at the relationship between employee wages and access to, participation in, and costs of employer-sponsored medical, dental, and vision care benefit plans.
Sports and Exercise
A look at participation and time spent in sports and exercise activities.
Women at Work
A look at women's labor force participation and earnings, how women spend their time and money, the nature of fatal work injuries, and labor force projections for the future.
STEM occupations: past, present, and future
A look at employment and wages in science, technology, engineering, and mathematics occupations.