Total Compensation Statistics (2026)

Updated July 2026

The short answer

Employer costs for employee compensation averaged $49.32 per hour worked for civilian workers in March 2026: $33.72 in wages and salaries and $15.60 in benefits. In private industry the total was $46.60, split 69.9% wages and 30.1% benefits. State and local government cost $66.41 an hour with a 61.5/38.5 split. The pattern most people miss is that benefits are far more unequal than wages: in private industry, wages at the 90th percentile are 4.1 times the 10th, but benefits are 9.2 times, so total compensation is more unequal than salary alone.

$49.32
Civilian cost per hour worked
March 2026, BLS
$33.72
Wages and salaries
benefits $15.60
$46.60
Private industry total
69.9% wages, 30.1% benefits
$66.41
State and local government
61.5% wages, 38.5% benefits
$18.06
Private, 10th percentile
median $34.78, 90th $89.70
$3.18 vs $29.31
Benefits, 10th vs 90th
a 9.2x ratio
$14.88 vs $60.39
Wages, 10th vs 90th
a 4.1x ratio
$0.10 vs $4.20
Retirement, 10th vs 90th
a 42x ratio
Key takeaways
  • Employer costs for employee compensation averaged $49.32 per hour worked for civilian workers in March 2026: $33.72 in wages and salaries and $15.60 in benefits (BLS).
  • In private industry the total was $46.60, split 69.9% wages and 30.1% benefits. So roughly three dollars in every ten an employer spends never appears on a payslip.
  • State and local government cost $66.41 an hour, with a 61.5/38.5 split. The two sectors pay in opposite currencies: at the 90th percentile the private sector pays $4.14 an hour in supplemental pay against $0.91 public, while public retirement contributions are $18.26 against $4.20.
  • The distribution is the story. In private industry, total compensation was $18.06 at the 10th wage percentile, $34.78 at the median and $89.70 at the 90th.
  • Benefits are far more unequal than wages. Wages at the 90th percentile are 4.1x the 10th ($60.39 against $14.88), but benefits are 9.2x ($29.31 against $3.18). Our arithmetic on the BLS figures.
  • Employer retirement and savings contributions are the most unequal component of all: $0.10 an hour at the 10th percentile against $4.20 at the 90th, a ratio of about 42 to 1.

What an hour of work costs

Employer costs for employee compensation averaged $49.32 per hour worked for civilian workers in March 2026.

Of that, $33.72 was wages and salaries and $15.60 was benefits.

Private industry averaged $46.60 an hour, split 69.9% wages and 30.1% benefits. State and local government averaged $66.41, split 61.5% and 38.5%.

Employer cost per hour worked, March 2026

Source: BLS, Employer Costs for Employee Compensation, March 2026.

Compensation cost by sector
SectorTotal per hourWages and salariesBenefitsBenefit share
Civilian workers$49.32$33.72$15.6031.6%
Private industry$46.60$32.60$14.0130.1%
State and local government$66.41$40.82$25.5938.5%

The civilian benefit share is our arithmetic; BLS publishes the split for private industry and government directly. Source: BLS, Employer Costs for Employee Compensation, March 2026

Three dollars in ten never reaches a payslip

For a private-sector worker, roughly 30% of what the employer spends on them is benefits rather than pay.

That covers paid leave, insurance, retirement contributions, supplemental pay and legally required benefits such as Social Security, Medicare and unemployment insurance.

It is the reason a salary comparison between two jobs can be actively misleading, and why the useful question at an offer is what the whole package costs rather than what the number on the letter says.

The gap widens once benefits are counted

In private industry, total compensation was $18.06 an hour at the 10th wage percentile, $34.78 at the median and $89.70 at the 90th.

Wages alone ran $14.88, $24.15 and $60.39, a ratio of about 4.1 to 1 between the top and bottom of that range.

Benefits ran $3.18, $10.63 and $29.31, a ratio of about 9.2 to 1. Benefits are therefore more than twice as unequally distributed as wages, and total compensation is more unequal than salary alone.

Private industry compensation by wage percentile

Source: BLS ECEC, table A.

Private industry compensation by wage percentile
Component10th percentileMedian90th percentile90th / 10th
Total compensation$18.06$34.78$89.705.0x
Wages and salaries$14.88$24.15$60.394.1x
All benefits$3.18$10.63$29.319.2x
Paid leave$0.48$2.24$8.0416.8x
Supplemental pay$0.31$1.31$4.1413.4x
Insurance$0.72$3.51$6.779.4x
Health insurance$0.70$3.36$6.319.0x
Retirement and savings$0.10$0.82$4.2042.0x
Legally required benefits$1.57$2.75$6.163.9x

Ratio column is our arithmetic on the BLS figures. Source: BLS, Employer Costs for Employee Compensation, March 2026, table A

Retirement is the most unequal component of all

Employer retirement and savings contributions in private industry were $0.10 an hour at the 10th wage percentile, $0.82 at the median and $4.20 at the 90th.

That is a ratio of about 42 to 1, by far the widest of any component the BLS reports.

This is where a pay gap becomes a wealth gap. A worker receiving ten cents an hour in employer retirement contributions is not accumulating a retirement account through their job in any meaningful sense.

Paid leave follows the same shape

Employer costs for paid leave ran $0.48 an hour at the 10th percentile, $2.24 at the median and $8.04 at the 90th, a ratio of about 17 to 1.

That matches what the access data shows separately: 43% of the lowest-paid tenth of civilian workers have paid sick leave against 96% of the highest-paid tenth.

The cost data adds the magnitude to the access data. It is not only that low-wage workers are less likely to have paid leave, but that where they have it there is far less of it.

The one component that is nearly flat

Legally required benefits ran $1.57, $2.75 and $6.16 across the same percentiles, a ratio of about 3.9 to 1, the narrowest of any component.

That is by design. Social Security, Medicare and unemployment insurance are statutory percentages of pay, so they scale with wages and nothing else.

Everything above that baseline is discretionary, and the discretionary part is where the distribution stretches.

Why the public sector looks different

State and local government compensation cost $66.41 an hour against $46.60 in private industry, a difference of $19.81.

Wages account for $8.22 of that gap and benefits for $11.58, so most of the difference is not salary.

The retirement figures make it concrete: a state or local worker at the 10th wage percentile receives $2.20 an hour in employer retirement contributions, 22 times the $0.10 their private-sector counterpart receives.

The same picture in state and local government
Component10th percentileMedian90th percentile
Total compensation$27.86$62.34$111.96
Wages and salaries$18.08$36.27$69.21
Total benefits$9.79$26.07$42.75
Retirement and savings$2.20$8.42$18.26
Health insurance$3.81$8.22$10.42
Supplemental pay$0.18$0.70$0.91
Legally required benefits$1.94$3.47$4.99

A state or local government worker at the 10th wage percentile receives $2.20 an hour in employer retirement contributions, 22 times the $0.10 a private industry worker at the same percentile receives. Source: BLS, Employer Costs for Employee Compensation, March 2026, table A

The two sectors pay in opposite currencies

Supplemental pay, which covers overtime, bonuses and shift differentials, runs $0.31, $1.31 and $4.14 an hour across the private-industry percentiles.

In state and local government it runs $0.18, $0.70 and $0.91. At the 90th percentile a private-sector worker gets more than four times as much supplemental pay as a public-sector one.

Retirement runs the other way by a wider margin: $4.20 an hour private against $18.26 public at the same percentile. The private sector pays for performance now and the public sector pays for tenure later, and comparing the two on salary alone misses both halves of that.

What this means when comparing two job offers

A salary difference of a few thousand dollars is easily outweighed by the benefit package, which is 30% of compensation on average and a third at the top of the distribution.

The components worth pricing are the employer retirement match, the employer share of health premiums and paid leave, because those are the three that vary most between otherwise similar employers.

The match is the one to price first, because it is a guaranteed return on money you were going to save anyway, and it is forfeited by inaction rather than by choice.

The compounding consequence

The 42-to-1 gap in employer retirement contributions does not stay 42 to 1. It compounds.

Over a full career, a difference of a few dollars an hour in employer contributions becomes a difference of hundreds of thousands of dollars in accumulated assets, before any difference in the worker's own saving rate.

That is the mechanism by which a labour market outcome becomes a wealth outcome, and it is visible in a dataset about hourly costs rather than in any statistic about wealth.

What an individual can actually control

The employer's contribution is set by the job. The worker's own contribution rate is not.

For anyone whose employer contribution is small, the practical response is a higher personal rate and an IRA alongside the workplace plan, because the workplace plan is doing less of the work than the averages suggest.

For anyone whose employer contribution is large, the failure mode is the opposite: contributing below the match threshold and leaving the most valuable part of the package unclaimed.

How to read these figures

These are costs per hour worked, from the employer's side, not take-home pay. Income tax and the employee's own deductions are not reflected.

Civilian workers means private industry plus state and local government. Federal government workers are excluded.

One change is coming: from the December 2026 data, the BLS will remove workers compensation costs from the ECEC, so totals after that point will not be directly comparable with the figures on this page.

Where the numbers on this page come from

Every figure is from the BLS release Employer Costs for Employee Compensation, March 2026, published 12 June 2026 as USDL-26-0827, table A and tables 1 to 4.

The percentile ratios and the civilian benefit share are our arithmetic on the published BLS dollar figures, labelled as such rather than presented as published values.

This dataset measures cost. The separate question of which benefits are offered at all is measured by the BLS Employee Benefits Survey, and the two are not interchangeable.

Frequently asked questions

How much does an employee cost per hour?

Employer costs averaged $49.32 per hour worked for civilian workers in March 2026: $33.72 in wages and salaries and $15.60 in benefits, according to the BLS.

What share of compensation is benefits?

30.1% in private industry and 38.5% in state and local government. So roughly three dollars in every ten an employer spends never appears on a payslip.

How much does an hour cost in the public sector?

$66.41 for state and local government workers against $46.60 in private industry. Of that $19.81 difference, $8.22 is wages and $11.58 is benefits.

Are benefits distributed as unequally as wages?

Far more unequally. In private industry, wages at the 90th percentile are 4.1 times the 10th, but benefits are 9.2 times. Total compensation is therefore more unequal than salary alone.

How much do employers contribute to retirement?

In private industry, $0.10 an hour at the 10th wage percentile, $0.82 at the median and $4.20 at the 90th, a ratio of about 42 to 1. It is the most unequally distributed component the BLS reports.

Which benefit is most evenly distributed?

Legally required benefits, at $1.57, $2.75 and $6.16 across the percentiles, a ratio of about 3.9 to 1. Social Security, Medicare and unemployment insurance are statutory percentages of pay, so they scale with wages and nothing else.

How should I compare two job offers?

By the whole package rather than the salary. The employer retirement match, the employer share of health premiums and paid leave vary most between similar employers, and the match is worth pricing first because it is a guaranteed return.

Is this the same as the BLS benefits access data?

No. This measures what benefits cost the employer. The Employee Benefits Survey measures whether they are offered at all. Both come from the National Compensation Survey and they are not interchangeable.

Sources

Figures are compiled from the primary sources above and reflect the most recent data available at the time of writing. This page is informational and not investment advice.

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