OwnerKit tools
Business / Free tool

Labour Burden Calculator

Work out the true cost of each productive hour after contributions, insurance, paid leave and other labour costs.

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How this is calculated

Enter the wage and the additional costs you pay for each worker. Paid leave reduces the hours available for production. Divide total annual employment cost by productive hours and apply that rate to the job.

Annual worker cost = paid hours × (wage × (1 + contributions) + other hourly cost) + annual insurance True hourly cost = annual worker cost ÷ (paid hours − paid leave hours) Job labour = true hourly cost × workers × hours per worker Target price = total cost ÷ (1 − target margin) Round the target price up to the next currency minor unit when needed.

Frequently asked questions

Is paid leave added twice?

No. The wages for leave are already in paid hours. The calculator deducts the leave hours from productive hours without subtracting their wages.

What goes in other hourly costs?

Use employer expenses paid per paid hour, such as an allowance. Enter insurance in its own field if it is an annual charge.

How do I estimate a crew?

Enter the number of workers and their on-site hours. The sample assumes a common hourly wage and burden for that crew.

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