Employment-related benefits are worth 36.45 percent of a federal employee’s salary, OMB has said in updating that amount from the previous figure of 32.85 percent. OMB made the change in the context of guidance to agencies regarding cost factors to use during contracting out studies. However, the number also acts as an indicator of the worth employment benefits. OMB raised the factor for insurance benefits from 5.7 to 6.7 percent and the factor for retirement benefits from 24 to 26.6 percent, while leaving unchanged the value of Medicare and miscellaneous benefits. OMB also told agencies to assume federal pay raises for 2008 and beyond of 4.2 percent, although that number is only an estimate based on projected private sector wage growth and does not mean that the administration will recommend or support raises of any particular size.