A Report on State Employee Benefits as a Percentage of Total Compensation
Report Number 13-707
The State of Texas provides a comprehensive total compensation package to employees working in state agencies. The value of the total compensation package for the average classified, regular full-time employee for fiscal year 2012 was $59,772, or $28.74 per hour, an increase of 1.6 percent from fiscal year 2011, when the hourly rate was $28.27. The two components of the average total compensation package that had the highest increases between fiscal year 2011 and fiscal year 2012 were the health insurance costs paid by the State and salary.
The total compensation package for fiscal year 2012 was comprised of $40,160 (67.2 percent) in average annual salary and $19,612 (32.8 percent) in average benefits for a classified, regular full-time employee. In comparison, other states' and local governments' compensation packages average 64.7 percent salary and 35.3 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. (See Appendix 2 for a detailed list of the total compensation package.) Quantifiable benefits included in the calculation of the total compensation package were:
- Employer payroll expenses—includes Social Security and Medicare taxes, unemployment compensation, and workers' compensation.
- Paid time off—includes holidays, sick leave, and vacation leave.
- Health insurance.
- Retirement contributions.
- Longevity pay.
The State offered other benefits that were not included in the calculation of the compensation package. Examples of those benefits were state-paid or state–sponsored professional development and training, state compensatory time, military leave, emergency leave, parent-teacher conference leave, volunteer firefighters and emergency medical services training leave, court-appointed special advocates volunteer leave, wellness leave, and extended sick leave. While the use of those benefits may vary among individual employees, they are real and valuable benefits to employees at all levels.
In addition to salary and benefits, the State provides employees with other rewards that cannot be easily quantified but provide indirect, real, and valuable benefits. Examples of those rewards include flexible work schedules and employee recognition programs.
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