What Percentage of Total Compensation Do Employee Benefits Account For?
Employers are often perplexed by how much they should spend on employee benefits. How much is too much for things like vacation time or bonuses?
A recent report released by the U.S. Bureau of Labor Statistics showed that benefits make up about 30% of the average worker’s paycheck.
The report provided separate numbers for civilian, private, and government workers, but for the purposes of this article, we’ll just look at the private business numbers. The highest percentage of benefit costs for private employers was required benefits, at 8.2%, followed by insurance at 7.8% and paid leave at 6.8%
According to the report, an employee with an annual salary of $50,000 would have a total compensation of $70,721. That employee would be paid:
$5,800 for legally required benefits
$5,516 for insurance
$4,809 for paid leave
$2,405 for retirement and savings
$2,122 for supplemental pay
Show your employees how much their benefits contribute to their pay through a total compensation statements from COMPackage.
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Category: Employee Benefits, Total Compensation, Total Rewards