Private industry employer costs for employee compensation varied by region in June 2025, according to data released by the U.S. Bureau of Labor Statistics. The Northeast reported the highest average hourly cost at $56.67, while the South had the lowest at $39.94 per hour. The Midwest and West regions recorded hourly costs of $42.13 and $49.85, respectively.
The Employer Costs for Employee Compensation (ECEC) data are based on the National Compensation Survey, which tracks employer expenses for wages, salaries, and benefits. Regional breakdowns show that in the Northeast, wages and salaries accounted for 69.2 percent of total compensation ($39.22 per hour), with benefits making up 30.8 percent ($17.44). Paid leave averaged $4.70 per hour or 8.3 percent of compensation; insurance was $4.47 per hour (7.9 percent), and legally required benefits such as Social Security and Medicare were $4.04 per hour (7.1 percent).
In the West, wages and salaries made up 70 percent of total compensation at an average of $34.88 per hour, with benefits at $14.97 or 30 percent of costs. Paid leave was $3.82 per hour (7.7 percent), legally required benefits were $3.80 (7.6 percent), and insurance averaged $3.52 (7.1 percent).
The Midwest saw an average wage and salary cost of $29.24 per hour—69.4 percent of all compensation—with total benefits averaging $12.89 (30.6 percent). Insurance was the largest benefit category at $3.46 per hour worked (8.2 percent), followed by legally required benefits ($3.05; 7.3 percent) and paid leave ($3.01; 7.l percent).
In the South region, employers spent an average of $28.66 on wages and salaries—71 .8 percent of total costs—and $11 .28 on benefits (28 .2 percent). Both paid leave and insurance averaged $2 .88 per hour worked (each representing 7 .2 percent), while legally required benefits were slightly lower at $2 .82 (7 .1 percent).
Nationally, private industry employer compensation costs averaged $45 .65 per hour worked in June 2025: wages and salaries represented about 70 .2% ($32 .07) with benefits making up roughly 29 .8% ($13 .58).
The ECEC data set excludes self-employed individuals, agricultural workers, and private household employees from its estimates but covers a sample designed to be representative through rotation over three years.
Additional information about metropolitan area ECEC estimates is available from BLS publications: www.bls.gov/opub/mlr/cwc/bls-introduces-new-employer-costs-for-employee-compensation-data-for-private-industry-workers-in-15-metropolitan-areas.pdf
Further details about methodology can be found in “National Compensation Measures,” BLS Handbook of Methods: www.bls.gov/opub/hom/ncs/home.htm
Historical ECEC data are accessible online: www.bls.gov/ecec
The next national release on Employer Costs for Employee Compensation is scheduled for December 12, 2025.
Individuals needing assistance accessing this information may contact BLS via voice phone or Telecommunications Relay Service.
