What does hourly compensation costs mean?
Hourly compensation costs are employer labor costs. Hourly compensation is defined as (1) all payments made directly to workers — pay for time worked (basic time and piece rates plus overtime premiums, shift differentials, other premiums and bonuses paid regularly each pay period, and cost-of-living adjustments), pay for time not worked (such as for vacations and holidays), seasonal or irregular bonuses and other special payments, selected social allowances, and the cost of payments in kind — before payroll deductions of any kind, and (2) employer expenditures for legally required insurance programs and contractual and private benefit plans (such as retirement plans, health insurance, unemployment insurance, and family allowances). In addition, for some countries, compensation is adjusted for other taxes on payrolls or employment (or reduced to reflect subsidies), even if they do not finance programs that directly benefit workers, because such taxes are regarded as labor costs. The BLS
