Labor Cost Calculator
From hourly wage, hours per week, weeks per year and headcount, estimate per-employee and total annual labor cost.
Input Data
Results
At a glance:Labor cost is the employer's total spending to hire staff. This calculator uses the simplest wage basis: per-employee annual cost = hourly wage × hours/week × weeks/year; total labor cost = per-employee cost × headcount. Example: HK$80/hour, 40h/week, 52 weeks, 5 staff → per employee HK$166,400, total HK$832,000. Labor is often the largest fixed cost in F&B, retail, cleaning; accurate figures aid pricing, scheduling and budgeting; dividing total labor cost by expected revenue gives the labor-cost ratio. For a truer burden, use a fully-loaded hourly wage (MPF, insurance, leave, bonus). WARNING: basic wage only — not overtime, leave, MPF, insurance, training; actual cost is higher. This is for educational/estimation use.
Formula
Per-employee annual cost = hourly wage × hours/week × weeks/year.
Total labor cost = per-employee cost × headcount.
$$\text{Cost}_{\text{emp}} = w \times h \times W$$$$\text{Total} = \text{Cost}_{\text{emp}} \times N,\quad w=\text{wage},\ h=\text{hours/wk},\ W=\text{weeks/yr},\ N=\text{headcount}$$How to Use
- 輸入每小時工資 (建議用含強積金等的全成本時薪)。
- 輸入每週工時、每年工作週數與員工人數。
- 查看每人年度成本與全體員工的年度人工總成本。
At 40h/week, 52 weeks — per-employee annual cost and 5/10-person team totals by fully-loaded wage
| Loaded wage | Per employee | 5-person | 10-person |
|---|---|---|---|
| HK$45 | HK$93,600 | HK$468,000 | HK$936,000 |
| HK$60 | HK$124,800 | HK$624,000 | HK$1,248,000 |
| HK$80 | HK$166,400 | HK$832,000 | HK$1,664,000 |
| HK$100 | HK$208,000 | HK$1,040,000 | HK$2,080,000 |
| HK$150 | HK$312,000 | HK$1,560,000 | HK$3,120,000 |
At 40h/week, 52 weeks: per-employee cost = wage × 2,080. Each HK$1 rise in loaded wage adds HK$2,080 per employee, over HK$20k for a 10-person team — small wage differences amplify hugely after multiplying hours and headcount, so use a loaded wage, not the base rate.
Case Studies
Case 1: A small restaurant's labor-cost ratio
Mr Chan runs a small restaurant with 5 staff; loaded wage ~HK$95 (MPF, insurance, leave included), 44h/week, 52 weeks. Per employee = 95 × 44 × 52 = HK$217,360; total = 217,360 × 5 = HK$1,086,800.
Last year revenue ~HK$3,500,000; labor-cost ratio = 1,086,800 ÷ 3,500,000 ≈ 31.1%. F&B ratios run high (around a third); 31% is reasonable. If it climbs, review scheduling or use part-time for peaks rather than across-the-board pay cuts. Note the loaded wage — using base HK$80 would understate cost by nearly 20%.
Case 2: Mixed wages must be grouped
A shop has 3 full-time (loaded HK$90, 40h) + 4 part-time (loaded HK$55, 20h), 52 weeks. Grouped: FT = 90 × 40 × 52 × 3 = HK$561,600; PT = 55 × 20 × 52 × 4 = HK$228,800; total = HK$790,400.
If all 7 are forced to one wage HK$90, 40h: 90 × 40 × 52 × 7 = HK$1,310,400 — overstating by >HK$520k (≈70%)! So with mixed wages/hours, compute each group separately and sum.
FAQ
Does this include MPF and insurance?
No, it counts basic wage only. For a truer burden, use a fully-loaded hourly wage including MPF, insurance, leave and bonus; the total will be closer to actual spend.
How to control labor cost?
Use the labor-cost ratio = total labor cost ÷ revenue × 100%. Levels vary by industry (F&B, retail higher). If high, review scheduling, productivity, and full/part-time mix, or automate — not just across-the-board cuts.
How to handle part-time or mixed wages?
This tool assumes uniform wage/hours. With mixed pay, compute each group separately (its own wage, hours, headcount) then sum. Example: 3 FT + 4 PT should be two groups (~HK$790,400); forcing one rate badly distorts the result.
About how much above base wage is a fully-loaded wage in HK?
No fixed multiple; build it item by item: (1) MPF — employer contributes 5% of relevant income (with caps); (2) paid leave — statutory holidays, annual and sick leave still paid, diluting effective hours; (3) employee compensation insurance (mandatory); (4) bonus/13th month; (5) recruitment, training, uniforms. Sum and divide by actual hours for the loaded wage. Roughly it can run 10–30% above base, but varies by benefits, industry and rank; compute per item rather than apply one multiplier. MPF rates, caps and minimum wage change — check MPFA and Labour Department.
Should weeks per year be 52 or net of leave?
Depends on the purpose. Default 52 (whole year) reflects the employer's total paid cost — statutory/annual/sick leave are still paid, so for budgeting/pricing use 52. For productivity (output per actual hour), use net working weeks (~46–48). Rule: cost/budget → 52; productivity → net. If the wage is already a loaded wage including leave, use actual working weeks to avoid double-counting. Keep one convention firm-wide for comparability.
Related Tools
References
Content review: Calculatorism Finance Team. Results are for reference only; please refer to the relevant authorities for the official figures.