Construction & ContractorsLabor Burden Engine
Construction Labor Cost Calculator
Calculate fully burdened labor expenses for construction crews with regular hours, 1.5x overtime, FICA, and workers comp insurance.
Calculation Results
Fully Burdened Labor Cost Formula
Total Labor = (Regular Wages + Overtime Wages × 1.5) × (1 + Labor Burden % / 100)- Regular Wages: Crew size × regular hours × hourly wage rate.
- Overtime Premium: Time-and-a-half (1.5× base wage) for all hours worked past 40 in a workweek.
- Labor Burden (approx. 22%–28%): FICA/Medicare (7.65%), Federal/State unemployment (FUTA/SUTA ~3%), Workers Compensation (~8%–15%), and liability insurance.
Step-by-Step Worked Example
Scenario: A 5-worker carpentry crew working 40 regular hours and 8 overtime hours at $32/hr base wage
Calculation Steps:
- Total Regular Hours = 5 × 40 = 200 hrs | Wages = 200 × $32 = $6,400
- Total Overtime Hours = 5 × 8 = 40 hrs | OT Wages = 40 × ($32 × 1.5) = $1,920
- Gross Wages = $6,400 + $1,920 = $8,320
- Labor Burden (24%) = $8,320 × 0.24 = $1,996.80
- Total Loaded Labor Cost = $8,320 + $1,996.80 = $10,316.80
- Effective Cost per Hour = $10,316.80 / 240 hrs = $42.99 / hr
Result: Total fully loaded crew labor cost is $10,317 for the week ($42.99 per worker-hour).
How to Use This Calculator
- 1Input the number of workers in the field crew.
- 2Enter regular and overtime hours worked per worker.
- 3Set base hourly wage and employer burden percentage.
Assumptions & Limitations
- Estimates are based on standard national averages and current prevailing construction materials and contractor rates.
- Actual trade bids may fluctuate according to local building code requirements, permit fees, and site topography.
- Always obtain multiple written bids from licensed, bonded, and insured contractors before commencing work.
Frequently Asked Questions
What is a labor burden rate in construction?
Labor burden is the actual employer cost of having an employee beyond raw wages, including employer payroll taxes, workers comp insurance, health benefits, PTO, and safety training.
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