Manufacturing Labor Cost Calculator
Calculate fully loaded direct manufacturing labor costs including regular wages, overtime multipliers, employer payroll taxes, healthcare, and workers comp.
Shop Floor Direct Labor Parameters
Loaded Labor Cost Formula
Total Loaded Labor = (Regular Wages + Overtime Wages) × (1 + Employer Burden Rate %)- Base Wages: Straight hourly wage paid to production operators.
- Overtime Premium: Time-and-a-half (1.5x) or double-time wages for hours exceeding 40/week.
- Employer Burden: FICA (Social Security & Medicare), FUTA/SUTA unemployment taxes, health insurance, 401(k) matches, and workers compensation insurance (typically 20%–35%).
Step-by-Step Worked Example
Calculation Steps:
- Regular Wages = 10 × 40 × $25 = $10,000
- Overtime Wages = 10 × 5 × $37.50 = $1,875
- Gross Wages Total = $10,000 + $1,875 = $11,875
- Employer Burden (28%) = $11,875 × 0.28 = $3,325
- Total Loaded Labor Cost = $11,875 + $3,325 = $15,200 / week
- Effective Loaded Hourly Rate = $15,200 / 450 total hrs = $33.78 / hr
How to Use This Calculator
- 1Enter the number of line operators and regular hours worked.
- 2Input base hourly wage and overtime hours worked.
- 3Specify employer burden percentage (payroll taxes, healthcare, insurance).
Assumptions & Limitations
- Standard FLSA overtime rate of 1.5x unless customized.
- Employer burden percentage applies uniformly across direct production labor.
Frequently Asked Questions
What is a typical employer labor burden percentage in US manufacturing?
US manufacturing labor burden typically ranges from 25% to 35% on top of base wages, driven by employer-side FICA (7.65%), state unemployment, workers compensation, and health insurance.
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