For release 10:00 a.m. (ET) Thursday, September 17, 2020				       USDL-20-1736

Technical information:	(202) 691-6199  *  ncsinfo@bls.gov  *  www.bls.gov/ect
Media contact:		(202) 691-5902  *  pressoffice@bls.gov


			EMPLOYER COSTS FOR EMPLOYEE COMPENSATION – JUNE 2020
			
Employer costs for employee compensation for civilian workers averaged $38.20 per hour worked in June 2020,
the U.S. Bureau of Labor Statistics reported today. Wages and salaries cost employers $26.17 while benefit
costs were $12.04. The average cost for health insurance benefits was $3.18 per hour worked. (See table 1.)

Private industry worker compensation costs for employers averaged $35.96 per hour worked in June 2020.
Wages and salaries averaged $25.18 and accounted for 70.0 percent of employer costs, while benefit costs
averaged $10.79 and accounted for 30.0 percent. The average cost of health insurance benefits was $2.73 per
hour worked and accounted for 7.6 percent of total compensation in June 2020. (See table 1.) 

State and local government worker compensation costs for employers averaged $52.36 per hour worked in June
2020. Wages and salaries averaged $32.43 and accounted for 61.9 percent of employer costs, while benefit
costs averaged $19.93 and accounted for 38.1 percent. The average cost of health insurance benefits was
$6.01 per hour worked and accounted for 11.5 percent of total compensation in June 2020. (See table 1.)


Health insurance costs in private industry highlights:

* Among occupational groups, health insurance costs ranged between $1.25 per hour worked (7.0 percent of
  total compensation) for service occupations and $4.13 (6.7 percent of total compensation) for management,
  professional, and related occupations.

* Health insurance cost employers $2.38 (6.8 percent of total compensation) for nonunion workers and $6.58
  per hour worked (13.3 percent) for union workers. 

* Among major industry groups, health insurance costs ranged between $0.78 per hour worked (4.9 percent of
  total compensation) in leisure and hospitality and $4.63 (8.1 percent) in information.

* Health insurance costs by establishment employment size ranged between $1.69 per employee hour worked (5.9
  percent of total compensation) in the smallest establishments (1-49 workers) and $4.70 (9.0 percent) in
  the largest establishments (500 workers or more).

* Among census divisions, health insurance costs ranged between $1.96 (6.2 percent of total compensation) in
  West South Central and $3.32 per employee hour worked (7.7 percent) in the Pacific.

Other insurance benefit costs in private industry were $0.04 per employee hour worked (0.1 percent of total
compensation) for life insurance, $0.05 (0.1 percent) for long-term disability, and $0.08 (0.2 percent)
for short-term disability.

Note: Highlighted health insurance estimates are available through the database query tool at
www.bls.gov/ncs/ect/data.htm.
 __________________________________________________________________________________________________________________
|		   Coronavirus (COVID-19) Pandemic Impact on June 2020 ECEC Data                                   |
|The Employer Costs for Employee Compensation (ECEC) reference date was June 12, 2020. Response rates for June were|
|comparable with prior releases, and no changes in estimation procedures were necessary. Additional information    |
|is available at www.bls.gov/covid19/employer-costs-for-employee-compensation-covid19-effects-june-2020.htm.       |
|__________________________________________________________________________________________________________________|

Employer Costs for Employee Compensation for September 2020 is scheduled to be released on Thursday,
December 17, 2020, at 10:00 a.m. (ET).

                                        TECHNICAL NOTE

Employer Costs for Employee Compensation (ECEC), a product of the National Compensation Survey, provides
the average employer cost for wages and salaries as well as benefits per employee hour worked. The ECEC
covers the civilian economy, which includes data from both private industry and state and local
government. Excluded from private industry are the self-employed, agricultural workers, and private
household workers. Federal government workers are excluded from the public sector.

All workers are included in the benefit cost estimates including those that do not have plan access or
do not participate. Costs are also affected by other factors such as cost sharing between employers and
employees, plan features, and plan generosity. For the latest information on the percentage of workers
with access to and participating in employer-sponsored benefit plans, including health care and
retirement and savings plans, see www.bls.gov/ebs.

The “National Compensation Measures” provides additional details on the sample design, calculation
methodology, and resources explaining changes over time. (See www.bls.gov/opub/hom/ncs/home.htm.)
 
Additional ECEC estimates, including historical data, are available in the ECEC database query tool
at www.bls.gov/ncs/ect/data.htm.

Sample size
Data for this reference period were collected from a probability sample of approximately 25,500
occupational observations selected from a sample of about 6,300 private industry establishments
and approximately 7,700 occupational observations selected from a sample of about 1,400 state and local
government establishments that provided data at the initial interview.

Measures of reliability
Relative standard errors (RSEs) provide users a tool to ascertain the quality of an estimate to ensure
that it is within an acceptable range for their intended purpose. RSEs are available at
www.bls.gov/ncs/ect/ecec-rse.htm and database query tool at www.bls.gov/ncs/ect/data.htm.

Comparisons
Compensation cost levels in state and local government should not be directly compared with levels in
private industry. Differences between these sectors stem from factors such as variation in work
activities and occupational structures.

Area definitions
Metropolitan area definitions have been updated based on Office of Management and Budget Bulletin No.
13-01, dated February 28, 2013. For more information see www.census.gov/programs-surveys/metro-micro.html.

Publication focus
Topics of news releases for the upcoming reference periods are as follows:
•	September 2020 - Compensation costs in state and local government
•	December 2020 - Supplemental pay costs in private industry
•	March 2021 - Compensation costs by wage percentile and 15 metropolitan areas

The 2020 ECEC release dates are available at www.bls.gov/schedule/news_release/ecec.htm.