At Work

What American workers really earn, especially the workers whose salaries you pay⁉️

I’m sure you have seen the headlines; CEO salary is $12,000,000. The fact is that kind of number is rarely salary, but instead it represents total compensation which includes the value of all employee benefits including the future value of retirement income. That distinction matters greatly.

imageFor example, based on the numbers below your taxes are paying the average state and local government worker $94,078 per year (compared with $66,684 for private industry workers). If you are interested, that’s a 41% premium paid to government workers.

Remember that the next time there is a labor dispute involving public employee unions.

Employer costs for employee compensation averaged $33.94 per hour worked in March 2016, the U.S. Bureau of Labor Statistics reported today. Wages and salaries averaged $23.25 per hour worked and accounted for 68.5 percent of these costs, while benefits averaged $10.70 and accounted for the remaining 31.5 percent. Total employer compensation costs for private industry workers averaged $32.06 per hour worked in March 2016. Total employer compensation costs for state and local government workers averaged $45.23 per hour worked in March 2016.

The average cost for health insurance benefits was $2.44 per hour worked in private industry (7.6 percent of total compensation) in March 2016. Among occupational groups, employer costs for health insurance benefits ranged from 89 cents per hour worked and 5.9 percent of total compensation for service workers, to $3.81 and 6.7 percent of total compensation for management, professional, and related occupations.

Private industry employer costs for paid leave averaged $2.20 per hour worked (6.9 percent of total compensation), supplemental pay averaged $1.16 (3.6 percent), insurance benefits averaged $2.59 (8.1 percent), retirement and savings averaged $1.23 (3.8 percent), and legally required benefits averaged $2.54 (7.9 percent).

Source: Bureau of Labor Statistics press release 6-9-16

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1 reply »

  1. Interesting stats for averages for medical coverage. I compared them to mine for private industry and according to my W-2 it worked to being $8.27/hr. of which I am guessing that included what I pay in premiums $1.43/hr. The 1095-C works out to be $0.23/hr so I really do not understand the meaning of the 1095-C. Now I have good insurance, not great, but if my costs are 4x the average, my guess the other plans are crap. Or the government averages are lagging really so badly no wonder good policies can’t be made.

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