Round-the-clock recorded messages for the Consumer Price Index and a variety of other 

Bureau of Labor Statistics data are available by dialing the New York-New Jersey Information 

Office’s main telephone number: (646) 264-3600. For recorded messages, press ‘2’. 

$20.27 $22.80 $21.28 $19.50 $18.71 

$8.52 

$10.18 

$8.73 

$8.56 $7.42 

$0

$5

$10

$15

$20

$25

$30

$35

United States Northeast West Midwest South

Wages and salaries Benefits

Source: U.S. Bureau of Labor Statistics

Chart 1. Employer costs per hour worked for employee compensation 

in private industry by region, June 2012

NEW YORK-NEW JERSEY INFORMATION OFFICE 

New York City, N.Y. 

For release: Tuesday, September 18, 2012 12-1876-NEW 

Technical information: (646) 264-3600 • BLSInfoNY@bls.gov • www.bls.gov/ro2 

Media contact: (646) 264-3620 • Kohli.Martin@bls.gov 

EMPLOYER COSTS FOR EMPLOYEE COMPENSATION FOR THE REGIONS – 

JUNE 2012 

Employer costs for employee compensation in private industry among the four geographic regions of 

the country ranged from $26.14 per hour in the South to $32.98 in the Northeast during June 2012, the 

U.S. Bureau of Labor Statistics reported today. Chief Regional Economist Martin Kohli noted that 

employer costs for employee compensation in the other two regions were $28.06 in the Midwest and 

$30.01 in the West. (See chart 1.) In addition to regional estimates, employer costs for nine geographic 

divisions are also available. Within divisions, total compensation costs ranged from $24.44 in the East 

South Central division to $33.47 in the New England division. (See table 1.) Employer Costs for 

Employee Compensation (ECEC) are based on the National Compensation Survey, which measures 

employer costs for wages, salaries, and employee benefits. (Geographic definitions of the regions and 

divisions follow in the Technical Note.) 

 
- 2 -

In the Northeast, hourly total compensation costs were comprised of the following: wages and salaries 

(at $22.80) made up 69.1 percent, while total benefits (at $10.18), accounted for the remaining 30.9 

percent. Insurance costs, which include life, health, and short- and long-term disability, averaged $2.79 

per hour worked and 8.5 percent of all compensation costs. Legally required benefits, which include 

Social Security and Medicare, workers’ compensation, and unemployment insurance, averaged $2.71 

per hour worked and represented 8.2 percent of total compensation costs. Paid leave benefits, of which 

vacation, holiday, sick, and personal leave is included, was $2.46 per hour worked and accounted for 7.5 

percent of total compensation costs. 

Hourly wages and salaries averaged $21.28 in the West and accounted for 70.9 percent of all 

compensation costs. Total benefits averaged $8.73, or 29.1 percent of total compensation costs. Legally 

required benefits averaged $2.58 per hour worked and accounted for 8.6 percent of total compensation 

costs in the West. Insurance benefits averaged $2.31 per hour worked and represented 7.7 percent of all 

employer costs, while paid leave was $2.03 per hour, or 6.8 percent of total compensation costs. 

The Midwest Region witnessed hourly wage and salary averages of $19.50 in June 2012, and that 

represented 69.5 percent of all compensation costs. Total benefits averaged $8.56, and accounted for the 

remaining 30.5 percent of all compensation costs. The three highest employee-cost areas for employers 

included: insurance benefits ($2.55 per hour worked), legally required benefits ($2.29 per hour), and 

paid leave ($1.86 per hour). These cost areas represented 9.1 percent, 8.2 percent, and 6.6 percent, 

respectively, of total employer compensation costs in the Midwest. 

In the South, wages and salaries averaged $18.71 per hour and comprised 71.6 percent of total employer 

compensation, while total benefits, at $7.42 per hour, accounted for the remaining 28.4 percent. Legally 

required benefits represented the largest benefit category, averaging $2.09 per hour worked, or 8.0 

percent of total compensation costs. Insurance benefits, at $1.96 per hour, or 7.5 percent of total 

compensation costs, represented the second largest benefit category in the South. Paid leave, the third 

largest benefit category, averaged $1.73 per hour and represented 6.6 percent of all costs. 

Overall, compensation costs among private industry employers in the United States averaged $28.80 per 

hour worked in June 2012. Wages and salaries, at $20.27 per hour, accounted for 70.4 percent of these 

costs, while benefits, at $8.52, made up the remaining 29.6 percent. 

Technical note 

Employer Costs for Employee Compensation (ECEC) measures the average cost to employers for wages 

and salaries and benefits per employee hour worked. 

Employer Costs for Employee Compensation data in this release cover private industry. Excluded from 

private industry are the self-employed and farm and private household workers. The cost levels for this 

quarter were collected from a probability sample of approximately 47,400 occupations selected from a 

sample of about 9,500 establishments in private industry. The private industry sample is rotated over 

approximately 5 years, which makes the sample more representative of the economy and reduces 

respondent burden. Data are collected for the pay period including the 12th day of the survey months of 

March, June, September, and December. 

Employer Costs for Employee Compensation data on total compensation, wages and salaries, and 

benefits in private industry are produced annually in the March reference period for 15 combined and 

metropolitan statistical areas (CSA and MSA). For further information about metropolitan area ECEC 
- 3 -

estimates see: “BLS Introduces New Employer Costs for Employee Compensation Data for Private 

Industry Workers in 15 Metropolitan Areas,” at www.bls.gov/opub/cwc/cm20090921ar01p1.htm. 

For detailed information on Employer Costs for Employee Compensation, see Chapter 8, “National 

Compensation Measures,” of the BLS Handbook of Methods at 

www.bls.gov/opub/hom/pdf/homch8.pdf and www.bls.gov/opub/hom/homch8_a.htm. 

Regional definitions 

Northeast region 

 New England division: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, 

Vermont 

 Middle Atlantic division: New Jersey, New York, Pennsylvania 

Midwest region 

 East North Central division: Illinois, Indiana, Michigan, Ohio, Wisconsin 

 West North Central division: Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, 

South Dakota 

South region 

 South Atlantic division: Delaware, District of Columbia, Florida, Georgia, Maryland, North 

Carolina, South Carolina, Virginia, West Virginia 

 East South Central division: Alabama, Kentucky, Mississippi, Tennessee 

 West South Central division: Arkansas, Louisiana, Oklahoma, Texas 

West region 

 Mountain division: Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah, Wyoming 

 Pacific division: Alaska, California, Hawaii, Oregon, Washington 

Obtaining information 

We encourage users interested in learning more about changes to the Employer Costs for Employee 

Compensation to contact the Bureau of Labor Statistics. Information on the ECEC and other surveys are 

available on our Web site at www.bls.gov. Current and historical BLS data are also posted on our Web 

site at www.bls.gov/ect. If you have additional questions, you can contact an Information Specialist in 

the New York-New Jersey BLS information office at (646) 264-3600. Information from the Employer 

Costs for Employee Compensation program is available to sensory impaired individuals upon request. 

Voice phone: (202) 691-5200, Federal Relay Services: 1-800-877-8339. 
- 4 -

Cost Percent Cost Percent Cost Percent

Total compensation................................. $32.98 100.0 $33.47 100.0 $32.81 100.0 $26.14 100.0 $26.37 100.0

 Wages and salaries.............................. 22.80 69.1 23.41 70.0 22.58 68.8 18.71 71.6 19.04 72.2

 Total benefits........................................ 10.18 30.9 10.05 30.0 10.22 31.2 7.42 28.4 7.33 27.8

 Paid leave........................................... 2.46 7.5 2.46 7.4 2.47 7.5 1.73 6.6 1.77 6.7

 Vacation........................................... 1.24 3.7 1.27 3.8 1.22 3.7 0.87 3.3 0.90 3.4

 Holiday.............................................. 0.75 2.3 0.77 2.3 0.74 2.3 0.55 2.1 0.56 2.1

 Sick................................................... 0.34 1.0 0.31 0.9 0.35 1.1 0.21 0.8 0.22 0.8

 Personal............................................ 0.15 0.4 0.12 0.4 0.15 0.5 0.09 0.3 0.09 0.3

 Supplemental pay............................... 1.01 3.1 0.90 2.7 1.05 3.2 0.80 3.1 0.68 2.6

 Overtime and premium [2]................. 0.24 0.7 0.24 0.7 0.24 0.7 0.27 1.0 0.23 0.9

 Shift differentials.............................. 0.07 0.2 0.08 0.3 0.07 0.2 0.06 0.2 0.06 0.2

 Nonproduction bonuses................... 0.70 2.1 0.57 1.7 0.74 2.3 0.48 1.8 0.39 1.5

 Insurance............................................ 2.79 8.5 2.78 8.3 2.80 8.5 1.96 7.5 1.95 7.4

 Life.................................................... 0.05 0.1 0.05 0.1 0.05 0.1 0.04 0.1 0.04 0.1

 Health................................................ 2.62 7.9 2.61 7.8 2.62 8.0 1.84 7.0 1.83 6.9

 Short-term disability.......................... 0.08 0.2 0.06 0.2 0.08 0.3 0.04 0.2 0.04 0.2

 Long-term disability........................... 0.05 0.2 0.05 0.2 0.05 0.2 0.04 0.1 0.04 0.1

 Retirement and savings...................... 1.20 3.6 1.21 3.6 1.20 3.6 0.84 3.2 0.80 3.0

 Defined benefit................................. 0.49 1.5 0.48 1.4 0.50 1.5 0.33 1.3 0.29 1.1

 Defined contribution.......................... 0.71 2.1 0.73 2.2 0.70 2.1 0.51 1.9 0.51 2.0

 Legally required benefits.................... 2.71 8.2 2.71 8.1 2.71 8.3 2.09 8.0 2.13 8.1

 Social Security and Medicare........... 1.90 5.8 1.95 5.8 1.88 5.7 1.57 6.0 1.59 6.0

 Social Security [3]........................... 1.52 4.6 1.56 4.7 1.50 4.6 1.26 4.8 1.27 4.8

 Medicare......................................... 0.38 1.2 0.39 1.2 0.38 1.2 0.31 1.2 0.31 1.2

 Federal unemployment insurance..... 0.03 0.1 0.03 0.1 0.04 0.1 0.03 0.1 0.03 0.1

 State unemployment insurance........ 0.32 1.0 0.33 1.0 0.31 0.9 0.16 0.6 0.17 0.6

 Workers' compensation.................... 0.46 1.4 0.40 1.2 0.48 1.5 0.33 1.3 0.34 1.3

See footnotes at end of table.

South divisions

Cost Percent

South Atlantic

Percent

New England Middle Atlantic

Cost

Table 1. Employer costs per hour worked for employee compensation and costs as a percent of total compensation: Private 

industry workers, by census region and division, June 2012

Compensation component

Census region and division [1]

Northeast Northeast divisions South
- 5 -

Cost Percent Cost Percent Cost Percent Cost Percent

Total compensation............................... $24.44 100.0 $26.45 100.0 $28.06 100.0 $28.00 100.0 $28.18 100.0

 Wages and salaries............................ 17.22 70.5 18.78 71.0 19.50 69.5 19.26 68.8 20.03 71.1

 Total benefits...................................... 7.22 29.5 7.67 29.0 8.56 30.5 8.74 31.2 8.15 28.9

 Paid leave......................................... 1.57 6.4 1.71 6.5 1.86 6.6 1.84 6.6 1.89 6.7

 Vacation......................................... 0.79 3.2 0.86 3.2 1.00 3.6 0.99 3.5 1.05 3.7

 Holiday............................................ 0.50 2.1 0.56 2.1 0.57 2.0 0.57 2.1 0.56 2.0

 Sick................................................. 0.19 0.8 0.21 0.8 0.20 0.7 0.19 0.7 0.21 0.8

 Personal.......................................... 0.09 0.4 0.09 0.3 0.09 0.3 0.09 0.3 0.07 0.2

 Supplemental pay............................. 0.74 3.0 1.04 3.9 0.77 2.7 0.84 3.0 0.60 2.1

 Overtime and premium [2]............... 0.29 1.2 0.32 1.2 0.26 0.9 0.27 1.0 0.23 0.8

 Shift differentials............................ 0.06 0.3 0.06 0.2 0.07 0.3 0.08 0.3 0.05 0.2

 Nonproduction bonuses................. 0.38 1.6 0.66 2.5 0.43 1.6 0.48 1.7 0.33 1.2

 Insurance.......................................... 2.01 8.2 1.96 7.4 2.55 9.1 2.63 9.4 2.37 8.4

 Life.................................................. 0.05 0.2 0.04 0.2 0.04 0.1 0.04 0.1 0.04 0.2

 Health.............................................. 1.88 7.7 1.84 7.0 2.41 8.6 2.49 8.9 2.23 7.9

 Short-term disability........................ 0.04 0.2 0.04 0.1 0.05 0.2 0.06 0.2 0.04 0.1

 Long-term disability......................... 0.04 0.2 0.04 0.1 0.05 0.2 0.04 0.2 0.05 0.2

 Retirement and savings.................... 0.87 3.6 0.90 3.4 1.09 3.9 1.11 3.9 1.05 3.7

 Defined benefit............................... 0.42 1.7 0.37 1.4 0.50 1.8 0.56 2.0 0.36 1.3

 Defined contribution........................ 0.45 1.9 0.52 2.0 0.59 2.1 0.55 1.9 0.69 2.4

 Legally required benefits.................. 2.02 8.3 2.06 7.8 2.29 8.2 2.32 8.3 2.24 8.0

 Social Security and Medicare......... 1.48 6.0 1.58 6.0 1.63 5.8 1.63 5.8 1.63 5.8

 Social Security [3]......................... 1.20 4.9 1.26 4.8 1.31 4.7 1.31 4.7 1.30 4.6

 Medicare....................................... 0.28 1.2 0.31 1.2 0.32 1.1 0.32 1.1 0.33 1.2

 Federal unemployment insurance... 0.03 0.1 0.02 0.1 0.04 0.1 0.04 0.2 0.03 0.1

 State unemployment insurance...... 0.15 0.6 0.15 0.6 0.24 0.9 0.25 0.9 0.22 0.8

 Workers' compensation.................. 0.37 1.5 0.31 1.2 0.39 1.4 0.40 1.4 0.36 1.3

See footnotes at end of table.

East North Central West North Central

Table 1. Employer costs per hour worked for employee compensation and costs as a percent of total compensation: Private 

industry workers, by census region and division, June 2012 - Continued

Compensation component

Census region and division[1]

South divisions Midw est Midw est divisions

East South Central West South Central

Cost Percent
- 6 -

Cost Percent Cost Percent

Total compensation................................ $30.01 100.0 $27.99 100.0 $30.94 100.0

 Wages and salaries............................. 21.28 70.9 20.18 72.1 21.78 70.4

 Total benefits....................................... 8.73 29.1 7.82 27.9 9.16 29.6

 Paid leave........................................... 2.03 6.8 1.89 6.7 2.10 6.8

 Vacation........................................... 1.07 3.6 1.03 3.7 1.09 3.5

 Holiday............................................. 0.62 2.1 0.53 1.9 0.65 2.1

 Sick.................................................. 0.27 0.9 0.23 0.8 0.28 0.9

 Personal........................................... 0.08 0.3 0.10 0.3 0.07 0.2

 Supplemental pay............................... 0.74 2.5 0.72 2.6 0.75 2.4

 Overtime and premium [2]................ 0.22 0.7 0.21 0.8 0.22 0.7

 Shift differentials.............................. 0.05 0.2 0.04 0.2 0.05 0.2

 Nonproduction bonuses................... 0.48 1.6 0.46 1.7 0.49 1.6

 Insurance........................................... 2.31 7.7 1.95 7.0 2.47 8.0

 Life................................................... 0.04 0.1 0.04 0.1 0.03 0.1

 Health............................................... 2.20 7.3 1.84 6.6 2.36 7.6

 Short-term disability......................... 0.04 0.1 0.03 0.1 0.04 0.1

 Long-term disability.......................... 0.04 0.1 0.05 0.2 0.04 0.1

 Retirement and savings..................... 1.07 3.6 1.03 3.7 1.09 3.5

 Defined benefit................................. 0.45 1.5 0.32 1.1 0.51 1.6

 Defined contribution......................... 0.62 2.1 0.71 2.5 0.58 1.9

 Legally required benefits................... 2.58 8.6 2.23 8.0 2.74 8.9

 Social Security and Medicare.......... 1.76 5.9 1.64 5.8 1.81 5.9

 Social Security [3].......................... 1.41 4.7 1.30 4.7 1.46 4.7

 Medicare........................................ 0.35 1.2 0.33 1.2 0.36 1.2

 Federal unemployment insurance.... 0.03 0.1 0.03 0.1 0.04 0.1

 State unemployment insurance........ 0.24 0.8 0.19 0.7 0.27 0.9

 Workers' compensation................... 0.55 1.8 0.38 1.3 0.62 2.0

[2] Includes premium pay for w ork in addition to the regular w ork schedule (such as overtime, w eekends, and holidays). 

[3] Comprises the Old-Age, Survivors, and Disability Insurance (OASDI) program. 

Note: The sum of individual items may not equal totals due to rounding.

Cost Percent

[1] The States that comprise the census divisions are: New England: Connecticut, Maine, Massachusetts, New Hampshire, 

Rhode Island and Vermont; Middle Atlantic: New Jersey, New York, and Pennsylvania; South Atlantic: Delaw are, District of 

Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia, and West Virginia; East South Central: Alabama,

Kentucky, Mississippi, and Tennessee; West South Central: Arkansas, Louisiana, Oklahoma, and Texas; East North Central: 

Illinois, Indiana, Michigan, Ohio, and Wisconsin; West North Central: Iow a, Kansas, Minnesota, Missouri, Nebraska, North Dakota, 

and South Dakota; Mountain: Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah, and Wyoming; and Pacific: Alaska, 

California, Haw aii, Oregon, and Washington. 

Table 1. Employer costs per hour worked for employee compensation and costs as a percent of total 

compensation: Private industry workers, by census region and division, June 2012 - Continued

Mountain Pacific

Compensation component

Census region and division[1]

West West divisions