Employee Cost and Labour Cost Calculator
Works out what an employee costs beyond the salary, and your total labour cost.
Share sends a link that reopens these numbers. Copy details pastes the full breakdown as a list.
The formula
loaded cost = salary × (1 + Σ on-cost %) + other yearly costs labour cost = loaded cost × employees cost per hour worked = loaded cost ÷ (hours per week × weeks worked)
Every percentage is one you enter, and each is taken on the salary. Some payroll taxes only apply above a threshold, so use an effective percentage if yours does.
What to watch out for
Enter the salary, then each on-cost as a percentage of it. Tax and payroll rates change and differ by country, so enter the current ones for yours. The figures shown at first are examples only.
Hours per week and weeks worked give the cost of an hour actually worked, which is useful when pricing or quoting.
Frequently Asked Questions
What is a loaded employee cost?
Salary plus everything else the employer pays for that person. As an example only, a salary of 40,000 with on-costs of 20% and 1,500 of other costs comes to 49,500.00.
What is the difference between labour cost and loaded cost?
Loaded cost is for one employee, and labour cost is the total for everyone on the payroll. Five people at the example above cost 247,500.00 a year.
Where do I find the percentages?
Use current figures from your tax authority, payroll provider and benefits scheme, because they change and differ by country.