Chamber Survey Shows Worker Benefits Continue Growth

WASHINGTON, D.C. – The United States Chamber of Commerce today released the results of its annual benefits survey, which showed that employee benefit costs rose to 42.3 percent of payroll costs in 2002, up from 39 percent in 2001. Of all benefit expenditures, medically related payments accounted for the greatest share of employee benefit costs.

"Despite rising costs, employers continue to offer a broad array of benefits to their workers," said Bruce Josten, Chamber executive vice president. "These higher costs are being paid voluntarily by employers and demonstrate a commitment to employees and to maintaining a strong workforce."

Workers at companies participating in the survey received an average of $18,000 worth of employee benefits in addition to wages, the survey revealed. Of that amount, nearly $6,300 went for medically related benefits, with another $5,000 toward payments for time not worked and $2,600 for retirement benefits.

Medical benefit costs saw the sharpest increase, rising from 11 percent in 2001 to 15.2 percent of payroll costs in 2002. Compensation for holidays and time off, the second largest payroll expenditure, accounted for benefit costs of 11.6 percent of payroll, with retirement and savings payments accounting for another 6.2 percent.

The most common benefits offered by employers continue to include health and life insurance; paid holidays and vacation; and retirement benefits.

The Chamber has annually conducted an employee benefits study, which is widely used for benchmarking and documenting employee benefit costs, for more than 50 years. Nearly 400 companies participated in the latest survey.

The U.S. Chamber of Commerce is the world's largest business federation representing more than three million businesses and organizations of every size, sector and region.

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04-07