Bangalore: The Government workers are benefited greatly and their wages now outpace the employee compensation in private industry. According to the Labor Department, it costs about $12 more per hour to employ a state or local government worker versus a private sector employee. As reported by Sara Murray from The Wall Street Journal, the State and local government employers spent an average of $39.81 per hour worked in the first quarter compared to $27.73 per hour for those with private industry jobs. This is based on the Labor Department's quarterly series on employer costs for employee compensation and they wrap in wages and salaries as well as health benefits such as health insurance and retirement packages. However, the largest share of the costs comes from wages and salaries for both sets of workers: 70.6 percent for private employees and 65.9 percent for government workers and the rest of the payment comes in the form of benefits. It costs state and local governments $3.16 per hour to pay for employees' retirement and savings plans, compared to 96 cents for private workers. Another $4.52 goes to health insurance for public workers, compared to $2.08 for private workers. And governments spend $3 per hour for its workers' paid leave, compared to $1.88 for private workers. Meanwhile, a breakout of private workers showed that it cost more to employ union workers than nonunion employees. Compensation for union workers cost $37.16 per hour compared to $26.67 for non-union workers. Overall compensation of all civilian workers in the U.S. typically cost employers $29.71 per hour in the first quarter, compared to $29.39 per hour the same time a year ago. Public employee compensation has come under the knife lately as strapped states and cities search for ways to cut costs and balance their budgets.