What does this tell you about pay and politics and your taxes? What does this tell you about the possible impact on many employers and on inflation of a national $15.00 minimum wage when the national average pay today (including salaried workers) is $26.53?
Remember this when you hear about underpaid government workers, including teachers in many cases. Note the difference in benefit costs, especially considering that most government workers still have a defined benefit pension and many have employer-paid retiree medical benefits as well.
Employer Costs for Employee Compensation Summary
For release 10:00 a.m. (ET) Thursday, March 18, 2021 USDL-21-0437
EMPLOYER COSTS FOR EMPLOYEE COMPENSATION – DECEMBER 2020
Employer costs for employee compensation for civilian workers averaged $38.60 per hour worked in December 2020, the U.S. Bureau of Labor Statistics reported today. Wages and salaries cost employers $26.53 and accounted for 68.7 percent of total costs, while benefits cost $12.07 and accounted for the remaining 31.3 percent. (See table 1.)
State and local government employer costs averaged $53.47 per hour worked. Wages and salaries averaged $33.08 per hour worked and represented 61.9 percent of total compensation costs, while benefit costs averaged $20.39 and accounted for the remaining 38.1 percent. (See tables 1 and 3.)