Employment Cost Index

The Employment Cost Index (ECI), published quarterly by the Bureau of Labor Statistics, is a measure of changes in employer labor costs. On a national level, BLS publishes an index of Total Compensation as well as indexes for two components of Total Compensation (Wages and Salaries and Benefits) for various private- and public-sector industries. For New England and other regions, however, BLS publishes the indexes for private-sector workers only and does not publish an index for the Benefits component. ECI data are indexed to the fourth quarter of 2005, and data for New England begin in the first quarter of 2006.

The Wages and Salaries component reflects hourly straight-time wage rates, or, for workers not paid on an hourly basis, straight-time earnings divided by the corresponding hours. Straight-time wage and salary rates are total earnings before payroll deductions, including production bonuses, incentive earnings, commission payments, and cost-of-living adjustments. This component does not include premium pay for overtime and for work on weekends and holidays, shift differentials, and non-production bonuses (e.g., lump-sum payments provided in lieu of wage increases).

The Benefits component includes paid leave (e.g., vacations, holidays, sick and other leave), supplemental and premium pay for work beyond the regular schedule (e.g., overtime and work on weekends or holidays), shift differentials, and nonproduction bonuses (e.g., referral and attendance bonuses). This component also includes insurance benefits (life, health, short-term disability, and long-term disability), retirement and savings benefits (defined benefit and defined contribution plans), and legally required benefits (Social Security, Medicare, federal and state unemployment insurance, and worker compensation).

U.S. Bureau of Labor Statistics
http://www.bls.gov/ect/