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Construction labor burden calculator

The wage on the timecard is not what an hour of labor costs. Add payroll burden and fringe to get the loaded rate, then see what overtime and double time really add across a crew — the figure to compare with a budget line priced at base rate.

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Tool 04

Labour burden and overtime premium

A journeyman at $42 an hour does not cost $42 an hour. Burden, fringe and payroll taxes usually add thirty to forty percent, and overtime adds half again on top of that. This is the number to use when you price a change order or decide whether the weekend is worth it.

Crew inputs

Result

Loaded rate = base × (1 + burden%) + fringe. Straight-time cost = loaded × hours. Overtime premium = base × 0.5 × OT hours (the half again that overtime adds — the other half is the hour the crew would have worked anyway). Double-time premium = base × 1.0 × DT hours. True cost per hour = total ÷ hours, which is the figure to use when you compare it with a budget line that was priced at base rate.

How to use it

  1. Enter the base hourly wage.
  2. Enter payroll burden (taxes, insurance, workers’ comp) as a percentage, and fringe per hour.
  3. Enter straight-time, overtime and double-time hours for a week.
  4. Enter crew size to see the weekly cost across the crew.

A worked example

A $42 base wage with 32% burden and $12 fringe is a $67.44 loaded rate. Ten overtime hours add $210 of premium per worker — for a crew of eight, $1,680 a week that a base-rate budget never saw.
Want the background? The guide works through the arithmetic, the mistakes that hide problems, and a checklist.
Read: Construction labor forecasting →

Questions

What is labor burden in construction?

The cost of employing someone on top of their wage: payroll taxes, workers’ compensation, unemployment insurance, benefits and other statutory costs, usually expressed as a percentage of wages.

How do you calculate a loaded labor rate?

Base wage × (1 + burden %) + fringe per hour.

How much does overtime really cost?

The premium is half the base wage for each overtime hour (double time adds a full base wage), on top of the loaded cost of the hour itself.

What is a typical labor burden percentage?

It varies widely by trade, state and workers’ comp class; use your own payroll data rather than a rule of thumb.

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