The value of employer benefits

At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict , this post may contain references to products from our partners. Here’s an explanation for

Which bank should I choose?

Get personalized bank recommendations in 3 easy steps.

Benefits combined are worth about 30 percent of your total compensation package, according to the U.S. Department of Labor. They cost employers an average of $8.81 per hour worked in December 2008.

Suppose you’re offered an annual salary of $50,000. Your benefits package would theoretically be worth more than $15,000, so your total compensation would be valued at roughly $65,000.

Take a look at how much your benefits package adds to your overall compensation, based on the Department of Labor’s most recent estimates.

Benefit breakdown, based on $50,000 annual salary
Benefit description Percentage of pay Dollar value
Legally required benefits including Social Security, Medicare, unemployment insurance and workers compensation insurance 7.8 percent $3,900
Life, health and disability insurance 8.4 percent $4,200
Paid leave (vacation, holidays, sick leave and personal) 7.1 percent $3,550
Average employer contribution to retirement and savings 4.4 percent $2,200
Supplemental pay 2.5 percent $1,250
Total Value: $15,000
Source: U.S. Department of Labor – December 2008 Employer Costs for Employee Compensation Survey