The fully burdened cost of labour is considerably higher than the wage. Calculate the true cost of labour here!

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Common Labour Burden Costs Enter figures here Calculations
Base Employee Operative Cost:
Employee Annual Pay Annualised Wage £
Social Insurance (Employers contribution) 10.75% of Earnings %
Govt Levy 2 (if applicable) % of regular pay %
Profit Share/Pension employers contrib’ usually 2-5% % of regular pay %
Employee Health insurance usually 1.5-2.0% of regular pay %
Employee Liability Insurance(per emp’ as a % of Basic Pay) usually 1.5-2.5% of pay %
Direct cost related to employee operatives:
Health Provision (on-site first aid, occupational health, Cost per emp’) Lump sum per year per emp’ £
Team Days, Parties, C/o functions Lump sum per year per emp’ £
Annual Bonus (Christmas etc) Lump sum per year per emp’ £
Hygiene Facilities cost (production area washroom consumibles, sanitisers, replacement mats, towels etc) Lump sum per month per emp’ £
Personal Protective Clothing (hair-nets, covers, shoes, laundry etc) Lump sum per month per emp’ £
Canteen Subsidy Lump sum per month per emp’ £
Miscellaneous Lump sum per month per emp’ £
Non-productive hours:
Annual Leave Hours per year
Public Holiday Hours per year
Sick/Personal Days Hours per year
Company Meetings Hours per month
Training/Education Hours per year
Total Labour Burden
Annual Gross Wages
Total Annual Burdened Cost
Labour Burden as a Percentage of Wages
Cost per productive hour
Annual Productive Hours Per Employee
Total Annual Burdened Cost

NOTES

  • These values may change from year to year. Check latest Employment & Tax legislation
  • This worksheet uses annual salary
  • Not all hours for which an employee is paid are “productive.” This formula assumes 2080 hours available for work annually based on 260 week days x 8