Medical Benefits Still Largest Share of Employer Costs
No author cited
U.S. Chamber of Commerce, February 2008
According to the U.S. Chamber of Commerce's "2007 Employee Benefits Study," medical benefits accounted for the largest share of employer benefit costs at 12.1 percent, followed by retirement benefits at 10.4 percent. The study also found that payments for vacation, holidays and other paid time off resulted in 9.8 percent of costs.
The Chamber's study also shows that geography and costs are linked. Businesses in metropolitan areas spent $3,600 more per employee for medical care and $4,400 more per employee for retirement payments than companies in non-metropolitan areas, on average.
The study also found that the average dollar amount in benefits received by employees from the participating companies increased from $18,489 in 2005 to $21,527 in 2006.
More than 400 U.S. companies participated in the study, and more than 30 different types of benefits were analyzed by industry, company size, geographic region and for-profit or nonprofit status. The Chamber has produced the annual Study for more than 50 years to help business owners and executives evaluate their companies' benefits package, determine how it compares with others, and assess the costs of providing benefits.
