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Labor burden

From Wikipedia, the free encyclopedia

Labor burden is the actual cost of a company to have an employee, aside from the salary the employee earns. Labor burden costs include benefits that a company must, or chooses to, pay for employees included on their payroll. These costs include but are not limited to payroll taxes, pension costs, health insurance, dental insurance, and any other benefits that a company provides an employee.[1]

Fully-burdened costs for individual employees can be expressed as a yearly total to provide an estimate of how much the company will spend that year on an employee. It can also be expressed as an hourly cost by dividing the total yearly cost by the number of hours the employee will work.[2]

See also[edit]


  1. ^ "Labor Burden Definition". Law Insider. Retrieved 2023-09-20.
  2. ^ Gilson, Diane. "Labor Burden and Profits - Employees Real Cost and How Much You Should Charge" (PDF). Archived from the original (PDF) on 27 April 2011. Retrieved 13 June 2013.