Quick way to Calculate the Labor Rate

Quick way to calculate the labor rate, Toady I going to show you hot to calculate the labor rate?, Step-by-step.

As we know labor cost is the type of direct cost in construction project. Mostly include three things in direct cost, which is labor cost, material cost and plant cost.

Also cost of the construction project, divided in two parts as; direct costs and indirect cost.

In general terms, a labor rate is either the cost or price of labor. To expand on these two concepts:

Cost based. A labor rate is the cost of labor that is used to deriving the costs of various activities or products within a business.

Price based. A labor rate is the rate charged to customers for services performed by company employees.

Read also; Cost of Project | Direct Cost | Indirect Cost

Hot to Calculate the Labor Rate?

In this question, we consider as,

Salary per day; LKR 1500.00

Welfare & Insurance; LKR 400.00 & LKR 500.00

Medical & Bonus; LKR 3000.00 & LKR 9000.00


Labor cost per year = LKR 1500.00 x 365

                            = LKR 547,500.00


Add.

EPF 12% = 65,700.00
ETF 8% = 43,800.00
Insurance = 500.00
Welfare = 400.00
Medical = 3000.00
Bonus = 9000.00

Total cost per year = 669,900.00


Per day = 669,900.00/ 237*
           = 2826.58

* We Assume total work day in year as a 237 no of days.


Therefore,
Unit rate per hour = Rs 2826.58/ 8*
= 353.32//

* Working hour in day without overtime