Construction Labor Burden Calculator

What labor burden means on a jobsite

The wage you quote a new hire is not what an hour of their work costs you. On top of base pay you carry payroll taxes, workers compensation, benefits, paid time off, training and certifications, tools and PPE, the truck, and a share of overhead. Together those are the labor burden, and the fully burdened hourly rate is the all-in cost of one field hour. It is the only labor number a bid should be built on.

Why construction burden runs high

Skilled trades and construction can reach a total burden of 45 to 65 percent of base pay, more than most industries. Workers compensation is the biggest reason: field trade classifications carry premium rates that office work never sees, and your experience mod moves them further. Tools, PPE, and vehicle costs add a layer that desk jobs do not carry at all.

The components worth getting right

Payroll taxes are close to fixed: the employer share of FICA runs 7.65 percent, with federal and state unemployment on top. Workers comp should come straight from your policy, by class code. Benefits vary by company. Tools, PPE, and the truck are best estimated from last year's actual spend divided by field headcount. Overhead is the yard, the office, and the insurance beyond comp, allocated across productive field hours.

From burden to the bid

Once you have the fully burdened rate, every estimate gets simpler and more honest. Labor hours times the burdened rate is the true labor line. Comparing overtime against adding a crew member, or a sub against an employee, only works when both sides carry their full burden.

What is a typical labor burden in construction?

Skilled trades and construction commonly run a total burden of 45 to 65 percent above base pay, higher than most industries, because workers compensation premiums and equipment costs are heavy in the field. The default components here total near the bottom of that band. Replace them with your policy rates and actual costs.

Why is workers comp such a large share?

Comp premiums are set by trade classification and your experience mod, and field classifications carry some of the highest rates in any industry. A framing or roofing class can cost several times what an office class costs on the same payroll dollar, which is why the comp line deserves your real policy rate rather than a guess.

Should the truck and tools be in the burden?

Yes, if you want the number your bids should use. The vehicle share, fuel, small tools, and PPE are real per-worker costs of putting someone on a jobsite. Leaving them out understates your cost per field hour and quietly erodes margin on every bid.

How should I use the burdened rate?

Bid and price from it, not from the wage. If a crew member costs 55 dollars per fully burdened hour and you estimate 400 labor hours on a job, the labor line is 22,000 dollars before profit. Pricing from the bare wage instead would miss roughly a third of the real cost.

Is this exact?

No. It is a planning estimate. Comp rates, benefits, and overhead vary by state, trade, and company, so confirm the components against your policy documents and books before you bid from the result.