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A Report on State Employee Benefits as a Percentage of Total Compensation

January 2008

Report Number 08-704

Overall Conclusion

The value of the total compensation package for the average classified, regular full-time state employee for fiscal year 2007 was $54,103, or $26.01 per hour. The value of the State's total compensation package has increased by 3.8 percent since fiscal year 2006. The State's total compensation package was 67 percent salary and 33 percent benefits. This compares favorably with other state and local governments' compensation packages, which also average 67 percent salary and 33 percent benefits, according to the U.S. Bureau of Labor Statistics.

As part of this total compensation package, State of Texas employees receive both direct compensation, or pay, for time worked, as well as indirect compensation, which includes benefits. Quantifiable benefits included in the assessment of the compensation package's competitiveness are:

- Employer payroll expenses-includes Social Security and Medicare taxes, unemployment compensation, and workers' compensation.

- Time not worked-includes holidays, sick leave, and vacation leave.

- Health insurance.

- Retirement contribution.

- Miscellaneous pay-includes benefit replacement pay and longevity pay.

There are other benefits offered by the State of Texas that were not included in the assessment of the compensation package's competitiveness, such as state-paid or -sponsored professional development and training, extended sick leave, military leave, parent-teacher conference leave, and volunteer firefighters and emergency medical services training leave. While these benefits cannot be easily quantified, they are real and valuable benefits to employees at all levels.

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