This question is about average employee compensation costs.

What percentage should a company spend on salaries?

By Zippia Team - Dec. 7, 2022

A company should spend 40%-80% of their gross revenue on salaries and benefits. However, most of the cost typically goes to wages and salaries, while benefits make up a smaller portion. The average for companies in the US is split between 69% of compensation going toward wages and salaries and 31% going toward benefits.

What percentage should a company spend on salaries?

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