Calculator

Labour Rate Calculator

Calculate the true cost of employing an electrician, including NI, pension, holidays, and overheads. Essential for setting charge-out rates.

How to Use

Enter the employee's gross annual salary.

Check the employer NI rate — currently 13.8% above the secondary threshold.

Enter your employer pension contribution (minimum 3% under auto-enrolment).

Set the number of holiday days including bank holidays (statutory minimum is 28).

Add other per-employee costs like training, PPE, tools, and phone.

Review the true hourly cost. Your charge-out rate should be at least 2-3x this figure to cover overheads and profit.

About This Calculator

This labour rate calculator shows electrician employers the true cost of an employee, including National Insurance, pension contributions, holiday pay, and workplace overheads. Knowing your true cost per hour is essential for setting profitable charge-out rates and quoting accurately.

Frequently Asked Questions

What is the true cost of employing an electrician?

The true cost is typically 1.3-1.5x the gross salary. For an electrician on £38,000, the total cost is around £48,000-£50,000 including employer NI, pension, holidays, training, and PPE. This works out to approximately £28-£32 per productive hour.

What charge-out rate should I set for my employees?

A common rule of thumb is to charge 2.5-3x the employee's true hourly cost. If your electrician costs you £30/hour, you should charge £75-£90/hour. This covers the employee cost, business overheads, and profit margin.

How many productive hours per year should I assume?

After deducting holidays, sick days, training, and non-billable time, most electricians have around 1,500-1,700 productive hours per year. Using 1,600 hours is a reasonable estimate for planning.

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