Employer costs for employee compensation averaged $25.86 per hour worked in June 2005, the U.S.
Department of Labor's Bureau of Labor Statistics reported. Wages and salaries, which averaged
$18.21, accounted for 70.4 percent of these costs, while benefits, which averaged $7.64, accounted for
the remaining 29.6 percent. Employer Costs for Employee Compensation, based on the
National Compensation Survey, measures employer costs for wages, salaries, and employee benefits for
nonfarm private and State and local government workers.

Costs for legally required benefits, including Social Security, Medicare, unemployment insurance,
and workers‚ compensation, averaged $2.12 per hour (8.2 percent of total compensation). Employer
costs for life, health, and disability insurance benefits averaged $2.05 (7.9 percent); paid leave
benefits (vacations, holidays, sick leave, and other leave) averaged $1.70 (6.6 percent); and
retirement and savings benefits averaged $1.09 (4.2 percent) per hour worked.

Private industry

In June 2005, private industry employer compensation costs averaged $24.24 per hour worked.
Wages and salaries averaged $17.21 per hour (71.0 percent), while benefits averaged $7.03 (29.0
percent). Employer costs for paid leave averaged $1.54 per hour worked (6.3 percent), supplemental
pay averaged 69 cents (2.9 percent), insurance benefits averaged $1.76 (7.3 percent), retirement and
savings averaged 88 cents (3.6 percent), and legally required benefits averaged $2.12 (8.7 percent)
per hour worked.

Employer costs for retirement benefits varied by industry, occupation, bargaining status, region,
and establishment size. These differences reflect in part the varying incidence of benefit coverage
among these groups. The National Compensation Survey also produces comprehensive data on the
percentage of workers with access to and participation in various employer provided benefit plans.
For more information see the Internet site http://www.bls.gov/ncs/ebs/home.htm.