Labor Burden Calculator
Calculate the true fully-loaded hourly cost of an employee including taxes, insurance, benefits, and paid leave.
Federal: 7.65%
Varies by trade
On first $7K wages
Tool allowances, uniforms, training, etc.
Your $28.00/hr worker actually costs
$39.92/hr
1.43× multiplier · 42.6% burden · $83,038.56/yr
| Component | $/hr | % of base |
|---|---|---|
| Base Wage | $28.00 | — |
| FICA / Payroll Tax (7.65%) | $2.14 | 7.6% |
| Workers Comp (15%) | $4.20 | 15.0% |
| Unemployment Insurance (6% on first $7,000) | $0.20 | 0.7% |
| Health Insurance ($600/mo) | $3.46 | 12.4% |
| Retirement Match (3%) | $0.84 | 3.0% |
| PTO / Paid Leave (10 days) | $1.08 | 3.8% |
| Fully Burdened Rate | $39.92 | 42.6% |
Burdened labor rate = base wage + FICA (7.65%) + workers comp + unemployment insurance + health insurance (annualized per hour) + retirement match + PTO cost (paid hours not worked). Based on 2,080 working hours per year (52 weeks × 40 hours). Unemployment insurance applied to first $7,000 of annual wages per employee, per federal FUTA schedule.
Frequently Asked Questions
What is labor burden in construction?
Labor burden includes all payroll costs beyond base wages: payroll taxes (FICA), workers compensation insurance, unemployment insurance, health insurance, retirement contributions, and paid time off. These costs typically add 25–45% on top of the base wage, meaning a $28/hr worker often costs $36–$40/hr fully loaded.
What is a typical labor burden rate for construction?
25–40% on top of base wages is the typical range. A 1.35× multiplier is common for basic benefits; 1.40–1.45× is typical for firms with solid health and retirement packages. Union contractors often run higher due to pension and benefit fund contributions.
Does workers comp vary by trade?
Yes, significantly. Laborers and roofers can be 20–35% of payroll due to injury risk, while HVAC or electrical rough-in is typically 8–15%, and clerical staff is 1–2%. Your state classification codes determine the exact rate. Always verify with your insurance carrier before estimating.
How do I use the burdened rate for bidding?
Always use the burdened rate — not the base wage — when calculating labor costs in estimates. Forgetting burden is one of the most common estimating mistakes, and on a large project it can turn a profitable job into a loss. Apply the burdened rate to all productive hours, then add markup on top.