The cost of benefits is large, and the amount is increasing. Nationwide it amounts to 33 percent of cash compensation. Employers pay 24 percent and employees pay 9 percent. Health costs are increasing 8-10 percent per year. While virtually all government workers are covered for health benefits, many in the private sector are not.
Benefits serve social, agency and individual goals.
Examples are social security old age and disability pensions, workers' compensation and unemployment insurance. Agency goals are to improve morale and motivate employees. The deferred gratification keeps the focus on the career and on the team, and prevents fraud and corruption. Benefits maintain loyalty to the civil service rather than a political party. They prevent claims against the civil service.