Hospitality Staff Labor Cost Calculator
Calculate the total labor cost for your hospitality staff, including base wages, overtime, employer payroll taxes, and benefits. Understand your true cost-per-employee and total weekly or annual labor expense.
Formulas Used
Gross Weekly Wage per Employee:
= (Regular Hours × Hourly Wage) + (Overtime Hours × Hourly Wage × OT Multiplier)
where Regular Hours = Total Hours − Overtime Hours
Employer Payroll Tax per Employee (weekly):
= Gross Weekly Wage × (Payroll Tax Rate ÷ 100)
Total Weekly Cost per Employee:
= Gross Weekly Wage + Payroll Tax + Weekly Benefits Cost
Total Weekly Cost (All Staff):
= Total Weekly Cost per Employee × Number of Employees
Annual Total Labor Cost:
= Total Weekly Cost (All Staff) × Operating Weeks per Year
Effective Hourly Labor Cost:
= Total Weekly Cost per Employee ÷ Total Hours per Week
Assumptions & References
- Overtime hours entered are assumed to be included within the total hours per week figure, not additional to it.