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.
For 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).