The Fact
BLS average hourly earnings from the payroll survey are calculated from gross payroll divided by hours. They do not include employer-paid benefits such as health insurance or retirement contributions, and they exclude items including irregular bonuses, some commissions, retroactive pay, and the employer share of payroll taxes.
What This Means
“Average hourly earnings” is not the same thing as total compensation. A worker’s compensation package can change even when this earnings measure does not capture those changes.
Sources
- U.S. Bureau of Labor Statistics, CES Frequently Asked Questions; Current Employment Statistics Concepts. Accessed October 2, 2026. https://www.bls.gov/ces/