| Tip The
Importance of Employee Benefits
At one time, employee benefits were called “fringe benefits”.
Today, employee benefits represent a significant part of an employee’s
financial security. As you can see in the column below, employee benefits
average more than 42% of an individual’s total compensation. Over
the next ten years, trade off’s between wages and benefits will
increase as we see changes in demographics, legislation, and the economy.
*How the Payroll Dollar is Spent
Wages 58.2%
Employee Benefits 42.3%
(Employee benefits as broadly defined)
Medical Benefits 15.2%
Time not worked 11.6%
Legally required payments 8.7%
Retirement & savings 6.2%
Other benefits & costs .6%
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