The pay rate is only the start. Add super, leave, workers comp and overheads, spread over the hours you actually bill, and see what an hour of labour truly costs.
Store this burdened rate against each worker in traqR and every job costs labour at what it really costs you — so your margins are honest.
Start free trialSuper, workers comp, payroll tax, PPE, training and vehicle costs all sit on top of the base wage. Together they’re the labour burden.
The burden as a percentage of the base wage is your labour burden rate — a quick way to compare the true cost of employing people.
Divide the total cost by the hours actually billed to customers. That burdened hourly cost is the floor your charge-out rate has to clear.
Labour burden is all the extra cost of employing someone beyond their base wage — superannuation, workers compensation, payroll tax, leave, PPE, training, tools and vehicle costs. The “labour burden rate” expresses those indirect costs as a percentage of the base wage, and the “burdened cost” is the true hourly cost once they’re all included.
For most Australian trades employees the burden runs around 25–45% on top of the base wage before you even account for downtime. Super alone is 12%, and workers comp, leave, PPE and vehicles add the rest. Businesses that give staff a fully kitted vehicle sit at the higher end.
Because only billable hours earn revenue to cover the cost. You pay for 52 weeks but get fewer working weeks, and only part of each week is billable. Spreading the full cost over the hours you actually charge gives the real number your pricing must beat — often 1.5×–1.8× the base rate.
They’re two views of the same thing. This tool leads with the labour burden rate and the burdened hourly cost — handy for pricing and estimating. The employee cost calculator breaks the full annual cost down in more detail. Use whichever framing fits the job in front of you.
This calculator is a general estimate, not financial advice. On-costs such as workers comp premiums and payroll tax vary by state, trade and employer, and leave and utilisation vary by person. Confirm your figures with your accountant and insurer.
Store the burdened rate against each worker in traqR and every job costs labour honestly — protecting your margin. Try it free for 14 days.