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Benefits make up 30% of private-sector hourly compensation
In June, legally required benefits were $3.76 per hour, while discretionary items like paid leave and health insurance accounted for the rest of the 30% total.
Benefits now account for exactly 30% of what private-sector employers pay per hour worked, according to Bureau of Labor Statistics data from its Employer Costs for Employee Compensation report for June. The BLS figures show $14.07 of a $46.89 total hourly compensation cost went to benefits, while wages covered the remaining $32.82.
Legally required benefits such as Social Security, Medicare, unemployment insurance, and workers’ compensation cost full-time private-sector employers $3.76 per hour, or 7% of total compensation. The analysis distinguishes that fixed legal slice from voluntary benefits that employers can adjust, including health insurance, retirement contributions, paid leave, and supplemental pay.
Paid leave is one of the largest adjustable components, costing full-time private-sector employers $4.40 per hour, or 8.1% of total compensation. In contrast, part-time workers cost $25.20 per hour in total, with benefits at $5.05, or 20%, and paid leave dropping to $0.90 per hour.
The report also highlights wide regional gaps that can affect how employers benchmark compensation competitiveness. Total compensation ranged from $41.85 per hour in the South to $54.76 in the Northeast, while benefits represented 28.4% in the South versus 31.5% in the Northeast, according to data cited by Insurance Business.