By Dilok @Adobe Stock

In June 2025, employer compensation costs for civilian workers in the US averaged $48.05 per hour, with wages and salaries making up $33.02 and benefits $15.03, according to the US Bureau of Labor Statistics. Private industry compensation averaged $45.65 per hour, while state and local government costs were significantly higher at $63.94. In the manufacturing sector, total compensation averaged $46.30, with union workers costing $52.54 per hour, driven by higher benefit expenses, compared to $45.42 for nonunion workers. Benefits such as insurance, retirement, and paid leave continued to represent a significant share of overall compensation. The BLS writes:

Employer costs for employee compensation for civilian workers averaged $48.05 per hour worked in June 2025, the U.S. Bureau of Labor Statistics reported today. Wages and salaries averaged $33.02, while benefit costs averaged $15.03.

Total employer compensation costs for private industry workers averaged $45.65 per hour worked in June 2025. Wages and salaries averaged $32.07 per hour worked and accounted for 70.2 percent of employer costs, while benefit costs averaged $13.58 per hour worked and accounted for the remaining 29.8 percent.

Total employer compensation costs for state and local government workers averaged $63.94 per hour worked in June 2025. Wages and salaries averaged $39.31 and accounted for 61.5 percent of employer costs, while benefit costs averaged $24.63 and accounted for 38.5 percent.

In the private industry, paid leave costs averaged $3.44, supplemental pay costs averaged $1.84, insurance costs averaged $3.44, retirement and savings costs averaged $1.54, and legally required benefit costs averaged $3.31 per hour worked. In state and local government, paid leave costs averaged $4.71, supplemental pay costs averaged $0.66, insurance costs averaged $7.36, retirement and savings costs averaged $8.50, and legally required benefit costs averaged $3.41 per hour worked.

In the manufacturing industry within the private sector

Total employer compensation costs for workers averaged $46.30 per hour worked in June 2025. Wages and salaries averaged $30.94 per hour worked and accounted for 66.8 percent of employer costs, while benefit costs averaged $15.36 per hour worked and accounted for the remaining 33.2 percent.

In the manufacturing industry, total employer compensation costs averaged $52.54 per hour worked for union workers and $45.42 for nonunion workers. For union workers, wages and salaries averaged $30.36 per hour worked and accounted for 57.8 percent of employer costs, while benefit costs averaged $22.19 per hour worked and accounted for the remaining 42.2 percent. For nonunion workers, wages and salaries averaged $31.02 per hour worked and accounted for 68.3 percent of employer costs, while benefit costs averaged $14.40 per hour worked and accounted for the remaining 31.7 percent.

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