Labour costs are the sum of monies paid to employees during a specific period, year, quarter, month or week. Labour costs are split into direct costs and indirect costs.
Due to number of employees and associated factors within and related to the transformation process, large companies use dedicated software and applications to calculate Labour costs.
Use the calculator above to modify settings for your company and produce a bespoke Labour coast calculation. Note that the more staff in Tier 1, the higher your avearge hourly Labour Cost and vice versa.
Find this tool useful? Discover more great Human Resource Calculators.
Labour costs are the sum of monies paid to employees during a specific period, year, quarter, month or week. Labour costs are typically split into direct costs and indirect costs.
Large companies typically use dedicated software and applications to calculate Labour costs due to number of employees and associated factors within and related to the transformation process.
The key to effectively calculating labour costs is to be methodical and review specific assets individually. You should also have a benchmark figure based on the period whether daily, monthly or as in the Labour Cost Calculator above, annually.
Human Resource Assets
| Salary Tier | Salary | No of Employees | Total Hours | Hourly Rate | Tier Cost |
|---|---|---|---|---|---|
| Tier 1 | £100,00.00 | 1 | 37.5 | £51.28 | £100,00.00 |
| Tier 2 | £75,00.00 | 3 | 112.5 | £38.46 | £225,000.00 |
| Tier 3 | £50,00.00 | 30 | 1125 | £25.64 | £1500,000.00 |
| Tier 4 | £20,00.00 | 300 | 11250 | £10.26 | £6,000,000.00 |
| Totals | Salary | 334 | 12525 | Hourly Rate | £7,825,000.00 |