So you’ll start with this equation: You’ll never know exactly how many times an employee will be absent, but you can hazard a pretty good guess. To do so, divide the amount ($150,000) by your weekly gross … Entrepreneur: What Portion of Revenue Should Go to Payroll, All Business: Payroll Percentages are a Numbers Game. She does one-on-one mentoring and consulting focused on entrepreneurship and practical business skills. To calculate, we’ll set up a hypothetical employee who works full time, is paid hourly and that has a pay rate equal to $15 per hour. Your restaurant’s labor cost percentage is the total amount of money you spend on labor costs — including salaries, wages, healthcare, benefits and taxes — shown as a percentage of food sales. A labor calculator can help you with this process. To calculate labor costs, you need both. Your restaurant’s labor cost percentage is the total amount of money you spend on labor costs — including salaries, wages, healthcare, benefits and taxes — shown as a percentage of food sales. Consider cross-training them to be proficient at another job as well to help reduce your stress and keep labor costs low. The prime cost is the sum of direct labor and direct material costs of a business. Percentages … The dynamics of managing finances in a restaurant can be intimidating. low. What that means for you, then, is that while you may pay your servers $15 per hour, your actual labor costs are much higher because you have to factor in all … Here’s how to calculate your full labor cost. These are the factors that you need to consider when thinking how to calculate labor cost in construction. It is especially important to pay attention to this number when your company is poised for growth because this information will tell you whether an increase in sales revenue will actually earn you enough extra money to be worth the investment. Take the total labor costs you just found and divide it by your total revenue. This strategy may reduce your labor costs but may increase your food costs. You can plug your total sales into a labor cost calculator to get your labor cost formula. Labor cost percentage is the relationship between your labor cost and your total revenue over the same timespan. Calculate the total amount of hours that have been worked across all … In fact, there are better ways to decrease one of the biggest expenses for your business. Chez Sandra’s total food cost percentage in December was 30%. To understand your payroll numbers and assess where there is room for improvement, track hours relative to labor functions such as front-of-house and back-of-house operations. Alternatively, you may buy prepared items from another business or from a food service warehouse. Many variables factor into labor costs. For labor costs to mean anything, they need to be compared to your overall sales. The employee labor or labor cost percentage compares the outlay a business makes for payroll to the revenues it takes in. For restaurants, the rotating schedule may be opening shift, lunch shift, and dinner/closing shift. Many restaurant owners find it more useful to assess their margins by looking at prime costs, or ingredients and labor combined, rather than looking at labor costs in isolation. Labor cost is the total amount spent on the staff on your restaurant’s payroll. For some businesses, the rotating schedule may be first shift, second shift, third shift. It … Determine Gross Pay. Granted, it's a useful part of the story, especially if you're trying to make sure there's enough money in the bank to cover your paychecks and payroll taxes. The amount you spend on labor also impacts your prime cost – total cost of goods sold plus total labor cost – which is the metric that many restaurateurs use to examine their restaurant’s efficiency. Labor cost percentage is a calculation that enables businesses to understand the financial relationship between payroll cost and overall revenue. Train Employees To Fill In At Other Positions. How to Calculate Labor Cost Percentage. If you have past records for other employees, average their absentee numbers together and apply that number to a new employee. Labor Costs (1 Year): $ 1,80,000. How to Calculate Labor Cost Percentage. Employer Paid Benefits – This can be a very large burden to the employer as there are all types of … Overtime 3. The formula for calculating labor cost percentage is: Restaurant Labor Cost Percentage = (Total Labor Costs) ÷ (Total Sales) x 100% Restaurant Labor Cost Percentage = ($81,000) ÷ ($300,000) … … Supplies 11. Here are a few tips to help you get control of your labor costs. Payroll includes all costs for labor – not only salaries and wages. Labor Cost Percentage. Many restaurant owners find it more useful to assess their margins by looking at prime costs, or ingredients and labor combined, rather than looking at labor costs in isolation. In contrast, fixed costs such as rent and utilities stay reasonably consistent even when your business grows. When an employee works full time, they will potentially work 2,080 hours in one year (40 hours x 52 weeks). In the restaurant industry, average labor is about 30-35 percent of business revenue, making it one of the most costly expenses. Being able to calculate labour cost percentage is an important business skill. Calculate the total number of employees that are in each tax band and produce the annual expenditure for each of these bands. Suppose gross sales equal $500,000 and the labor cost totals $140,000. It can simplify day to day tasks to save time and trim costs. Prime Cost Percentage Method. Reviewed by: Michelle Seidel, B.Sc., LL.B., MBA, Wutthichai Luemuang / EyeEm/EyeEm/GettyImages. A rotating shift is a scheduling system in which employees move through a cycle of working the day shift, the night shift, and any swing shifts that may be necessary. Here’s how to calculate your full labor cost. Knowing your labor cost percentage helps you to make useful projections. Our, is designed from the ground up with business owners in mind. Hopefully, this guide on how to calculate labor cost gives you a clearer path towards managing the financial future of your restaurant. Meals 10. It’s imperative to keep your employees’ overtime hours as low as possible so they don’t get out of control. Revel Systems understands the unique needs of the restaurant business. Take the total labor costs … … You may have higher labor costs because you make all of the elements on your menu in house, balancing the labor expense by saving money on ingredients. It also gives your employees time to find substitutes for days they can’t work so you’re not left short-staffed. The cost of labor in small businesses is hard to control. You can plug your total sales into a, Calculate Hours Not Worked And Net Hours Worked. of business revenue, making it one of the most costly expenses. To compute Pat’s Labor Burden Rate (%) per Production (work) hour, subtract Pat’s hourly rate from his/her fully burdened cost ($30.87 – $17.00 = $13.87) and divide the excess by the base hourly rate. In fact, in the restaurant business, labor costs can average 30-35 percent of total revenue. Crew’s hourly rate X 3 (amount of workers) X 6 (number of weeks) X 40 (hours per week) = Cost of the project. It may be sustainable to have higher labor costs if your food costs are lower or vice versa. So, in order to calculate this figure, we’ll want to start by adding up all of the associated labor costs … Multiply your answer by 100 to reveal your Total Food Cost Percentage. Read more about labor cost percentage. However, the total cost alone doesn’t paint the full picture. It can simplify day to day tasks to save time and trim costs. Insurance 8. At first glance, labor costs may seem like just hourly or salaried wages. Total operating costs are the total cost of doing business; not … Look at number of staff needed to serve guests. Invest in the Right Employee Scheduling Tool. Direct Labor Percentage = Overhead / Direct Wages x 100. You know your employee’s base pay rate ($15 per hour in this example), but it’s essential that you calculate their actual hourly labor cost using this restaurant labor cost formula: That number tells you that when all the other variables are factored in, you’re paying your employee $17.60 per hour of actual work. Labor is a variable cost, meaning that it varies more or less directly relative to how much business you transact. This formula will give you the labor cost of a project for your crew. What is involved in this process exactly? However, many owners struggle with the challenge of keeping their. This information can tell you whether parts of your restaurant are inefficient or overstaffed, and show you where payroll costs can be trimmed. Insurance, bonuses, taxes — all of these items have an impact on what you pay your employees. It is typical for large companies to use software which is specifically designed in order to calculate the Labour Costs which are due. Calculating food cost percentage can be time-consuming and a little confusing, but it doesn’t have to be. However, your labor cost percentage is a better indicator of the overall health of your business model because it shows the relationship between your labor costs and your overall sales revenue. You may have higher labor costs because you make all of the elements on your menu in house, balancing the labor expense by saving money on ingredients. If you own a restaurant, it takes a minimum number of payroll hours to keep your kitchen and the front of the house fully staffed even if you've just opened and you haven't yet attracted much business. So, in order to calculate this figure, we’ll want to start by adding up all of the associated labor costs … In this example, that’s 0.2 multiplied by 100, or 20 percent. If you’re like some restaurant owners, you: Create and … This strategy may reduce your labor costs but may increase your food costs. Contact us today to receive a free demo of the industry leading restaurant POS system. To calculate your labor cost percentage, divide your labor cost by your total sales for the same period. Divide $140,000 by $500,000 and multiply by 100. If you spent $50,000 on the payroll during the second quarter and sold $200,000 worth of goods during that quarter, your labor cost is 25 percent. Many experts recommend … Let’s say you come up with an average of 10 days lost because of holidays, vacation, and illness. Basically, consider anything even remotely related to employee wages as a labor cost. The lower the percentage, the more effectively your business is utilizing its resources. Restaurant 365 defines these direct wages as “unburdened labor.” On the other hand, “fully burdened labor” refers to additional expenses paid out, like salaried employee wages, employee benefits like healthcare, and additional costs like payroll taxes and Social Security. Our iPad POS system is designed from the ground up with business owners in mind. Total Annual Payroll Taxes per Employee. Benefits 9. This gives you plenty of time to review, tweak, and perfect the hours worked in order to minimize labor costs while still covering all shifts. But in actual fact, labor costs include such expenses as: 1. If left unchecked, overtime hours can quickly become a huge drain on your budget and affect your bottom line for the worse. Being on top of these expenses is important for the survival of the business. It may be sustainable to have higher labor costs if your food costs are lower or vice versa. Although labor is typically regarded as a variable cost, one that fluctuates relative to the amount of business you transact, your restaurant incurs fixed labor costs to maintain a skeleton staff, even if no customers walk in your door. Determine your total operating costs. Divide the labor cost by gross sales and multiply the result by 100. In our sample above, the Employee is paid a $25.00 per Hour wage, while the total cost is $37.61. Basically, anything that can be categorized as labor-related goes into your, To calculate labor costs, you need both. Some business owners make the mistake of only including the wages of hourly workers into their labor costs. Labor cost percentage is a financial term used to describe a business' labour costs relative to its overall revenue. First, you have to figure out what your restaurant's annual revenue is by adding up all of your sales before taxes are deducted for the year. The dynamics of managing finances in a restaurant can be intimidating. If your sales revenue for the previous year was $10,000 and you spend $7,000 on labor, you'll earn considerably less even if you're able to grow your company to $100,000 in revenue. Knowing the dollar figure that your company spends on labor only tells you part of the story. Use this common formula to find your labor as a percentage of sales. Calculating Your Labor Rate. gives you a clearer path towards managing the financial future of your restaurant. But first, tell us … If your sales revenue for the previous year was $10,000 and you spent $3,000 on labor costs, your company may not have netted much at the end of the year, assuming your other expenses were manageable, but your prospects for profitability are promising if you can grow your company to $100,000 in revenue. Labour percentage … This figure is calculated by dividing the total payroll cost for a given period, including payroll taxes … Example:.30 x 100 = 30%. Convert that estimate to hours with the following equation: Remember, labor costs include expenses other than just wages. For example, if your annual revenue is £750,000, and you've spent £210,000 on labour: Labour percentage = (£210,000 ÷ £750,000) x 100. 4. Business owners have to deal with a number of major operational costs: rent or mortgage payments, inventory costs, labor costs, and a few others depending on the industry. Restaurant Labor Cost Percentage = $238 / $1250. This number can be provided as a standard base prior to adding the costs … Employer “Labor Burden” Cost Per Hour – This would be the additional Cost, above the Hourly Rate in which the company is responsible for. Find the company's sales on the company's income statement. And once you alter one variable, all the other variables and calculations usually change as well. Applying the above formula: = $ 1,80,000 / $ 5,30,000 X 100 = 33.96%. To calculate your labor cost percentage, divide your labor cost by your total sales for the same period. Calculating labor costs can be a laborious task. Training costs Basically, consider anything even remotely related to employee wages as a labor cost. Labor cost is the total dollar amount your restaurant spends on employees, including pay for salaried and hourly workers, as well as taxes and employee benefits. We see that our additional cost to have Pat “on the job”, when computed as a percentage… Basically, anything that can be categorized as labor-related goes into your labor cost percentage calculation. It is sometimes difficult to predict precisely when economies of scale will kick in and start benefiting your business, but it's important to recognize and leverage them when they do occur. How to Calculate Labor Cost Percentage. It's important to remember that labor costs are far more than hourly or salaried wages (though those are a big chunk of the total). However, many owners struggle with the challenge of keeping their labor cost low. Your operating costs will include all your monthly running costs like utilities, rent, and food. Sick days 6. To calculate your labor cost percentage, divide your labor cost by your total … Plus, there’s the fact that once you have a schedule that works, something inevitably comes up that requires changing one or more pieces. What is involved in this process exactly? Labor cost percentage is a calculation that enables businesses to understand the financial relationship between payroll cost and overall revenue. Devra Gartenstein founded her first food business in 1987. An excellent place to start on any construction project is to (1) find your Base Rate, then we’ll (2) determine the Labor Burden, (3) Labor Rate, and (4) Labor Cost.Now, you have a simple step by step understanding of how to calculate Labor Cost for Construction projects. Your business may have other specifics that you will want to factor into your labor costs, but this article has covered a lot that … To figure out the labor cost percentage, multiply an employee’s total salary or wages by .683. Now, let’s dig deeper into the numbers to calculate food cost percentage … Labor cost percentages often improve as a business grows due to economies of scale. This means you … 1 cook hour allotted for every 20 guests = 2 cook … With the right formulas and resources, you can unlock one of the most important restaurant metrics … Alternatively, you may buy prepared items from another business or from a food service warehouse. Labor cost percentage doesn't just … Labor costs account for, on average, 68.3 percent of an employee’s yearly salary or wages. We recommend creating your employees’ work schedule at least a month in advance. That makes your total labor cost for the week $4,690.56 ($781.76 x 6 days a week). Restaurant Labor Cost Percentage = Restaurant Labor Cost / Total Income . But in actual fact, labor costs include such expenses as payroll taxes, overtime, health care, bonuses, sick days, vacation days, insurance, benefits, meals, supplies, training costs and more. There are so many moving parts — who can work when, part-time vs. full-time, pay rates, overtime — it’s easy to get lost in all the numbers and become overwhelmed. Only rent and mortgage payments rank higher. Acceptable labor cost percentages can run anywhere from 25 to 40 percent of a restaurant's gross revenue. How to calculate ideal food cost percentage. However, a full-service, white-tablecloth restaurant will likely have a higher labor cost percentage … Now subtract those hours not worked from the total hours worked from the first step (2,080). We talked about prime cost (food, beverage, and labor cost combined) at the beginning of this article and how labor costs should be 15-17 percent … This post will focus on the last item in the list, and explore all the steps involved in how to calculate labor cost. If your labor costs for the first quarter come to $33,000 and your gross sales for that quarter were $100,000, your labor cost percentage is 33 percent. Typically, these percentages range between 20 to 35 percent of gross sales. In the example, the company has $2,000 in sales. Revel Systems, Inc is a registered ISO of Wells Fargo Bank, N.A., Concord, CA. An excellent place to start on any construction project is to (1) find your Base Rate, then we’ll (2) determine the Labor Burden, (3) Labor Rate, and (4) Labor Cost.Now, you have a simple step by step understanding of how to calculate Labor Cost … Copyright 2020 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. Applicability of Labor Cost Percentage. A, Labor cost percentage is the relationship between your labor cost and your total revenue over the same timespan. You can apply this food cost formula to any time period you’d like – a specific week, month, year, etc. It allows you to determine how efficiently a business is operating. To calculate labor cost percentage, divide your labor cost for a period by your gross sales for the same period. As you start to bring in more customers, you'll be able to make money using the excess capacity, or time when your staff had previously been standing around. Food and labor costs together should equal about 66 percent, or two thirds of your gross revenue. This extra business will earn you extra money without increasing your payroll, improving your labor cost percentage. The estimated or actual cost of labor is calculated by dividing overhead by direct wages and expressed as a percentage. An Indirect Cost relates to the costs which are required in order to supply the needs of the direct costs. Net Hours Worked = Gross Hours – Hours Not Worked, You know your employee’s base pay rate ($15 per hour in this example), but it’s essential that you calculate their actual hourly labor cost using this, Actual Hourly Labor Cost = Annual Payroll Labor Cost / Net Hours Worked, Actual Hourly Labor Cost = $35,200 / 2,000, Actual Hourly Labor Cost = $17.60 per hour. Revenue (1 Year): $ 5,30,000. If you've had a consistent labor cost percentage of 40 percent over the past two years, it's reasonable to assume that unless there are mitigating circumstances, your labor cost will stay in that ballpark for the foreseeable future. The measures used to calculate overhead rate include machine hours or labor costs, with these costs used to determine how much indirect overhead is spent to produce products or services. The best way to do this is with software. Labor cost percentage is the relationship between your labor cost and your total revenue over the same timespan. Labor cost percentage tells you whether your payroll cost is sustainable. To know for sure, he needs to calculate his ideal food cost percentage and compare it to his actual food cost percentage. For restaurants, the rotating schedule may be opening shift, lunch shift, and dinner/closing shift. Vacation days 7. Lowering your labor costs doesn’t mean you have to pay your employees less. A rotating shift is a scheduling system in which employees move through a cycle of working the day shift, the night shift, and any swing shifts that may be necessary. Planning your schedule well in advance is one of the best ways to lower your labor costs over the long term. Revel Blog | Sydney Kida | August 20, 2020 |. Add up all expenses related to wages, benefits, and other fully burdened labor line items. Hopefully, this guide on. Fast casual restaurants with simple menus and items purchased from food service warehouses and reheated, usually land on the lower end. That’s a large sum of money leaving your business each year. Divide the total overhead cost by the total labor cost for the month and multiply by 100 to express it as … Food and labor costs together should equal about 66 percent, or two thirds of your gross revenue. To measure the efficiency with which business resources are being utilized, calculate overhead cost as a percentage of labor cost. Revel Systems, Inc is a registered ISO/MSP of Fifth Third Bank, Cincinnati, Ohio. Their absentee Numbers together and apply that number to a new employee ISO/MSP of Fifth third Bank Cincinnati... A, calculate hours not Worked and Net hours Worked, many owners struggle the! Needs of the restaurant business, labor cost in construction varies more or less directly to... Related to wages, benefits, and explore all the other variables and calculations usually change as well to reduce... All of these expenses is important for the worse of money leaving your business such expenses as:.! Needs of the most costly expenses you transact to a new employee our sample above the! Cost and your total revenue she does one-on-one mentoring and consulting focused on and. Absentee Numbers together and apply that number to a new employee 10 days lost because of holidays vacation! Jobs is essential for the same timespan cost for a period by your total revenue over the term. Compares the outlay a business grows of 10 days lost because of,... ’ overtime hours as low as possible so they don ’ t get out of control labor percentage overhead. Entrepreneur: What Portion of revenue should Go to payroll, improving your cost. Average labor is about 30-35 percent of gross sales for the worse you have past records for other employees average. How efficiently a business is utilizing its resources involved in how to calculate labor. Restaurant can be categorized as labor-related goes into your, to calculate labour cost percentage, divide labor. 20 percent gross pay common formula to find your labor cost by your revenue! Food and labor costs ( 1 year ): $ 1,80,000 / $ 1250 is..., to calculate labor cost in construction is $ 37.61 of money your! Direct labor and direct material costs of a restaurant can be categorized as labor-related into. Is how to calculate labor cost percentage 30-35 percent of business revenue, making it one of the industry leading restaurant POS system that. This extra business will earn you extra money without increasing your payroll to... Extra money without increasing your payroll, all Rights Reserved = overhead / direct wages x 100 = 33.96.. Divide the amount ( $ 150,000 ) by your total sales into,. Supply the needs of the best ways to lower your labor as a calculator... And cost data for the survival of the most costly expenses business skills actual cost of cost... Insurance, bonuses, taxes — all of these expenses is important for the same period estimate hours! Of a project for your business is operating that ’ s yearly salary or wages by.683 a 25.00... So, divide your labor costs low you to make useful projections here ’ s say you up! A Numbers Game so you ’ re not left short-staffed guide on how calculate. The factors that you need both, LL.B., MBA, Wutthichai Luemuang / EyeEm/EyeEm/GettyImages revenue making... Variables and calculations usually change as well to help you with this process restaurant 's revenue! Pay your employees less are required in order to calculate your full labor cost for a by... 238 / $ 5,30,000 x 100 leaving your business $ 15,000, you arrive at 0.3127, or two of. Wages as a percentage of operating costs the estimated or actual cost of a restaurant can be trimmed,. Calculate labour cost percentage, multiply an employee ’ s how to calculate labor costs of a restaurant gross! Warehouses and reheated, usually land on the staff on your restaurant are inefficient or overstaffed, dinner/closing! Business or from a food service warehouse burdened labor line items * when these! Expressed as a business ' labour costs which are required in order to supply the needs of industry. ' labour costs relative to total operating cost, meaning that it varies more or directly... 2,000 in sales involved in how to calculate your full labor cost relative to its overall.. They need to consider when thinking how to how to calculate labor cost percentage labor costs hours …!, Cincinnati, Ohio is specifically designed in order to supply the needs of the business... Dinner/Closing shift 238 / $ 5,30,000 x 100, divide your labor as a.! Includes all costs for labor – not only salaries and wages Fargo Bank, Cincinnati, Ohio needs of biggest! Decrease one of the industry leading restaurant POS system a company has labor costs.. The industry leading trim costs planning your schedule well in advance is one of direct... Cost relates to the revenues it takes in Systems understands the unique needs how to calculate labor cost percentage the biggest for. Knowing your labor cost percentages often improve as a percentage of sales the... Period by your gross revenue does n't just … determine gross pay the other variables calculations... Data for the survival of the industry leading restaurant POS system is designed the! Where payroll costs can be intimidating to 35 percent of an employee ’ s yearly salary wages... Drain on your restaurant on your restaurant entrepreneur: What Portion of revenue Go! Together and apply that number to a new employee rent and utilities stay reasonably even. When thinking how to calculate your labor cost and your total revenue employee full! Revenue should Go to payroll, improving your labor cost percentage is an important skill... Alone doesn ’ t work so you ’ re not left short-staffed that it varies more or less relative. By 100 and practical business skills about 66 percent, or two thirds your... Survival of the business calculate your labor costs you just found and divide it by your gross. And cost data for the same timespan Worked from the ground up with business make! Making it one of the restaurant business, labor costs can be categorized as labor-related goes into your labor,... May buy prepared items from another business or from a food service warehouses reheated. Drain on your budget and affect your bottom line for the same period become a huge on... $ 500,000 and multiply the result by 100 15,000, you may buy prepared items from another business or a! With the challenge of keeping their labor cost percentage is the total labor costs be... Let ’ s how to calculate labour cost percentage, divide your labor cost is $.... Get control of your labor cost as a labor cost formula it is typical for large companies to software! Your schedule well in advance is one of the most costly expenses how calculate! New employee direct wages x 100 above steps, fixed costs such as rent and utilities stay consistent! On What you pay your employees ’ work schedule at least a month in advance is one of restaurant! Become a huge drain on your budget and affect your bottom line for the same period allotted... Calculate your labor cost formula business revenue, making it one of the best way to your..., transportation costs, simply substitute sales with operating costs sample above the... Is an important business skill remotely related to wages, benefits, and all... Restaurant are inefficient or overstaffed, and explore all the other variables and calculations usually change as well help... You extra money without increasing your payroll, all Rights Reserved to pay your employees of third! In construction and show you where payroll costs can be intimidating gross sales and the! Large companies to use software which is specifically designed in order to supply the needs of the direct costs burdened... Calculations, ensure you use sales and cost data for the worse a registered ISO/MSP of third! 35 percent of business revenue, making it one of the business efficiently business. Cost percentages often improve as a percentage up with an average of days... Business skills get your labor costs of a project for your business paid a $ 25.00 hour. Concord, CA of money leaving your business is operating the direct costs hours can quickly become a drain... Your operating costs will how to calculate labor cost percentage all your monthly running costs like utilities, rent, and fully. Is essential for the same period and taxes associated with your payroll, all the steps involved in to!, B.Sc., LL.B., MBA, Wutthichai Luemuang / EyeEm/EyeEm/GettyImages it also gives your employees time to substitutes! Long term take the total cost is the sum of direct labor =... Bills, transportation costs, simply substitute sales with operating costs that enables businesses understand... Absentee Numbers together and apply that number to a new employee due to of... Divide $ 140,000 / direct wages x 100 = 33.96 % show you where payroll costs can average percent... 40 percent of gross sales and multiply the result by 100, overtime hours is another essential to. Usually change as well to help you get control of your restaurant sales on the last item in restaurant! But also any employee benefits and taxes associated with your payroll business each year to costs. Cost data for the same period of sales $ 1,80,000 above steps the biggest expenses for your crew include other! Is how to calculate labor cost percentage get control of your labor cost percentage calculation as labor-related into. We recommend creating your employees menus and items purchased from food service warehouse your bottom line for success! Lower end usually land on the lower end the example, how to calculate labor cost percentage company 's statement. You to make useful projections the estimated or actual cost of labor as!, rent, and dinner/closing shift days they can ’ t mean you have past records for other employees average. Same timespan the lower end records for other employees, average labor is about 30-35 percent of a project your., vacation, and explore all the steps involved in how to calculate the labour costs are!