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Because the correct comparison would be with total compensation, of which wages are only a portion. Total compensation is the costs to an employer to hire some
by WalterBright 1y ago
Because the correct comparison would be with total compensation, of which wages are only a portion.
Total compensation is the costs to an employer to hire some one. It includes:
1. contributions to retirement plans
2. so-called "employer paid" social security contributions
3. sick and paid vacation days
4. employer paid health insurance
5. stock plans
6. 401k plans
7. other payroll taxes
Last time I checked, these often added 40% or more over the takehome pay.
Also, the pay is based on the value the employee as an individual provides, not the value the company as a whole created. Just like the compensation for pro football players varies in a single team.
- gamblor956 1y agoBeyond Social Security contributions, which is legally mandated, most workers don't get the remaining items on your list. (And #7 is just double-counting #2.) It's like saying, a CEO gets a housing allowance and travel allowance and can expense most of their meals, so the entry level worker is doing okay.
- specialist 1y agoAm corrected. Updated question: Now include profit (surplus) in your analysis. Total compensation has not kept pace with corporate profitability. Why? -- > Just like the compensation for pro football players varies in a single team. Then why do professional athletes have unions?