Definition
The burdened labor rate (also “fully loaded” or “all-in” rate) is the total cost per hour of employing a worker, including wages, payroll taxes, workers’ comp, benefits, and a share of company overhead. It is the rate you should use when costing jobs and bidding so that labor is fully recovered.
Why It Matters
Using only the base wage understates true labor cost. Payroll taxes, insurance, and benefits can add 25–40% or more. Bidding on wage alone leads to under-pricing. The burdened rate ensures that when you charge labor to a job, you are capturing the full cost of that hour.
Field Example
Base wage $28/hr. With payroll taxes, workers’ comp, and benefits, the burdened rate is $38/hr. A job that uses 100 hours of this labor should be charged $3,800 in labor cost, not $2,800. The estimator uses $38/hr (or a blended rate for a crew) when building the bid.
Calculation / Formula (if applicable)
Burdened rate = Base wage + (Payroll taxes + Workers’ comp + Benefits + Allocable overhead) ÷ Billable or productive hours.
Often simplified as: Burdened rate = Base wage × (1 + burden factor) where burden factor might be 0.25–0.45.
Software Application
Allow defining burdened rates by worker, crew, or role. Use burdened rate (not just wage) when posting labor to jobs and when generating labor cost reports. Support multiple rates (e.g., overtime) and optional overhead allocation to labor.
Tooltip Version
Burdened labor rate is the full cost per hour of an employee—wages plus taxes, insurance, benefits—used so job cost and bids reflect true labor cost.
Related Objects
Related: