True Labour Cost Calculator UK
Calculate the real cost of employing staff. Wages + NI + pension + holidays + sick pay. Know what you're really paying.
Employee Details
Base salary before any deductions
Minimum 3% for auto-enrolment
Legal minimum: 28 days (5.6 weeks including bank holidays)
UK average: 5.8 days/year (trades typically 3-7 days)
Tools, training, phone, van allowance, etc.
Common Scenarios:
True Labour Cost
True Annual Cost
£37120
16.0% above base salary
Standard Employment Costs
Typical employment costs
Verdict
✅ LEAN EMPLOYMENT COSTS
£32000 salary = £37120 true cost (16.0% markup). Efficient package.
Charge out at £40.88/hour minimum to make profit. Track billable vs non-billable hours.
Cost Breakdown
Billable Days & Rates
📊 Rule of Thumb
True employment cost = 1.2-1.3× base salary (20-30% markup for NI, pension, benefits). Factor this into pricing.
💰 Charge-Out Multiplier
Standard: charge 2× true hourly cost. £20/hr true cost = £40/hr charge-out. Covers overhead + profit + non-billable time.
⚠️ Billable Utilization
After holidays, sick, training, admin, most employees are 60-70% billable. Track actual vs expected billable hours.
👷 Track True Labour Costs in Toolfy
See actual labour costs per job. Toolfy tracks time spent and calculates true cost including NI, pension, holidays:
Time tracking per job
Log hours worked by each employee on every job
True cost calculation
See full loaded cost including NI, pension, and benefits
Profitability per job
Know if jobs are profitable after true labour costs