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US Employers Place More Emphasis on Benefits | January 27 2004 |
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Employee benefit costs rose to 42.3% of all payroll costs in 2002, up from 39% in 2001 according to the annual benefits survey by the United States Chamber of Commerce. Medically related payments are the largest category, followed by payments for time not worked and retirement benefits. Companies participating in the survey paid an average of $18,000 worth of benefits per employee on top of their wages. More than a third of this - nearly $6,300 - took the form of medically related benefits, with another $5,000 toward payments for time not worked and $2,600 for retirement benefits. This represents a rapid rise in medical benefit costs since last year, from 11% of payroll costs in 2001 to 15.2% in2002. Compensation for holidays and time off accounted for benefit costs of 11.6% of payroll, and retirement and savings payments 6.2%. 'Despite rising costs, employers continue to offer a broad array of benefits to their workers', said Bruce Josten, executive vice president of the Chamber. 'These higher costs are being paid voluntarily by employers and demonstrate a commitment to employees and to maintaining a strong workforce'. The U.S. Chamber of Commerce is the world's largest business federation, and has conducted an annual employee benefits study for more than 50 years. Just under 400 companies participated in the latest survey. Simple printable version of this article. Email this article to a friend.
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