Private industry employer costs for employee compensation varied across U.S. regions in June 2025, according to the U.S. Bureau of Labor Statistics. The South reported the lowest average cost at $39.94 per hour, while the Northeast had the highest at $56.67 per hour. The Midwest and West recorded averages of $42.13 and $49.85 per hour, respectively.
In the Northeast, wages and salaries made up 69.2 percent of compensation costs, or $39.22 per hour, with benefits accounting for 30.8 percent at $17.44 per hour. Paid leave averaged $4.70 per hour worked (8.3 percent), insurance was $4.47 (7.9 percent), and legally required benefits were $4.04 (7.1 percent).
The West saw hourly wages and salaries averaging $34.88 (70 percent of compensation costs) and benefits at $14.97 (30 percent). Paid leave was reported at $3.82 per hour (7.7 percent), legally required benefits at $3.80 (7.6 percent), and insurance at $3.52 (7.1 percent).
In the Midwest, wages and salaries averaged $29.24 an hour—69.4 percent of total compensation—with benefits averaging $12.89 or 30.6 percent of the total cost to employers in this region.
The South reported that wages and salaries averaged $28.66 an hour, representing 71.8 percent of total employer compensation costs; benefits were calculated at $11.28 or 28 .2 percent.
Nationally, private industry employers’ average cost for employee compensation stood at $45 .65 per hour worked in June 2025, with wages and salaries accounting for about 70 .2 percent ($32 .07) and benefits making up 29 .8 percent ($13 .58).
The Employer Costs for Employee Compensation data are based on information collected from a probability sample drawn from about 6,200 private industry establishments covering approximately 26,400 occupational observations each survey period.
The BLS collects ECEC data quarterly in March, June, September, and December reference periods by surveying a rotating sample to ensure representation across industries while reducing respondent burden.
Additional information on metropolitan area estimates is available through a recent BLS publication: BLS introduces new Employer Costs for Employee Compensation data for private industry workers in 15 metropolitan areas.
More details on methodology can be found in “National Compensation Measures” within the BLS Handbook of Methods: BLS Handbook of Methods. Current and historical ECEC data are accessible online: BLS ECEC Data.
Employer Costs for Employee Compensation covers only private industry; it excludes self-employed individuals as well as agricultural and private household workers.
The next national release is scheduled for December 12, 2025.
“Employer Costs for Employee Compensation provides the average employer cost for wages and salaries as well as benefits per employee hour worked.”
