Department of Labor Logo United States Department of Labor
Dot gov

The .gov means it's official.
Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you're on a federal government site.

Https

The site is secure.
The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.

Supplemental pay averaged 3.5 percent of total compensation costs in December 2016

March 28, 2017

In December 2016, supplemental pay for private industry workers averaged $1.15 per hour worked, or 3.5 percent of total compensation costs. Supplemental pay varied widely by major occupational group, ranging from $2.53 per hour worked for management, professional, and related workers to $0.24 for service workers. 

Employer costs per hour worked for supplemental pay by major occupational group, private industry workers, December 2016
Compensation component Management, professional, and related All workers Natural resources, construction, and maintenance Production, transportation, and material moving Sales and office Service

Supplemental pay

$2.53 $1.15 $1.07 $1.01 $0.61 $0.24

Overtime and premium

0.15 0.26 0.72 0.56 0.15 0.10

Shift differentials

0.09 0.06 0.04 0.08 0.02 0.05

Nonproduction bonuses

2.29 0.83 0.31 0.37 0.44 0.09

The largest component of supplemental pay was nonproduction bonuses, averaging $0.83 per hour worked, or 2.5 percent of total compensation costs. Workers in management, professional, and related occupations had the highest nonproduction bonuses, averaging $2.29 per hour worked, or 3.9 percent of total compensation.

Employer costs for supplemental pay as a percent of total compensation by major occupational group, private industry workers, December 2016
Compensation component Management, professional, and related Production, transportation, and material moving All workers Natural resources, construction, and maintenance Sales and office Service

Supplemental pay

4.4% 3.7% 3.5% 3.1% 2.5% 1.6%

Overtime and premium

0.3 2.0 0.8 2.1 0.6 0.7

Shift differentials

0.2 0.3 0.2 0.1 0.1 0.3

Nonproduction bonuses

3.9 1.3 2.5 0.9 1.8 0.6

Natural resources, construction, and maintenance workers, and production, transportation, and material moving workers had the highest overtime and premium pay among major occupational groups in December 2016. Overtime and premium pay for natural resources, construction, and maintenance workers was $0.72 per hour worked, or 2.1 percent of total compensation. Overtime and premium pay for production, transportation, and material moving workers was $0.56 per hour worked, or 2.0 percent of total compensation. Overtime and premium pay for all workers was $0.26 per hour worked, or 0.8 percent of total compensation.

These data are from the Employment Cost Trends program. For more information, see “Employer Costs for Employee Compensation — December 2016” (HTML) (PDF). Nonproduction bonuses are given at the discretion of the employer and are not tied to a production formula. Common nonproduction bonuses include end-of-year and holiday bonuses, referral bonuses, and cash profit sharing. Additional information is available on the percentage of workers with access to nonproduction bonuses.

SUGGESTED CITATION

Bureau of Labor Statistics, U.S. Department of Labor, The Economics Daily, Supplemental pay averaged 3.5 percent of total compensation costs in December 2016 at https://www.bls.gov/opub/ted/2017/supplemental-pay-averaged-3-point-5-percent-of-total-compensation-costs-in-december-2016.htm (visited May 01, 2024).

OF INTEREST
spotlight
Recent editions of Spotlight on Statistics


triangle