How much do benefits cost employers?
In the early 1990s, benefit costs as a percentage of total compensation costs increased from 28.2 percent in 1991 to 29.2 percent in 1994. After 1994, those costs steadily declined reaching a low of 27.4 percent in 2000 and 2001. Beginning in 2002 benefits costs increased again. By December 2007, benefit costs as a percentage of total compensation costs were 30.2 percent.
It is important to remember that these figures include all employers. Providing health or retirement benefits is voluntary and some employers may provide either benefit or neither. On the other hand, because employers that do not offer the benefit are included in these figures, the actual costs of those who do provide the benefits are higher than the chart suggests.