Benefits account for 31.7 percent of an employee’s total cost. An employee’s total salary and wages account for 68.3 percent of their total cost. Retirement and savings account for 5.4 percent of their total cost, according to the US Department of Labor’s June 2017 Employer Costs for Employee Compensation survey. Employers should also consider an employee’s overhead percentage when determining the employee’s pay. Read more about employee salary and benefits percentages.