https://blog.geowork.app/tags/job-costing/Recent content in Job Costing on Geowork Blog - GPS Time Tracking for Field CrewsHugoen-usTue, 24 Mar 2026 00:00:00 +0000https://blog.geowork.app/articles/calculate-labor-burden-rate-construction/Tue, 24 Mar 2026 00:00:00 +0000https://blog.geowork.app/articles/calculate-labor-burden-rate-construction/<p>If you&rsquo;re bidding construction jobs based on hourly wages alone, you&rsquo;re losing money. Labor burden—the additional costs beyond wages—typically adds 30-55% to what you pay workers for most construction companies.</p> <p>Understanding and calculating your true labor burden rate is essential for profitable bidding.</p> <h2 id="what-is-labor-burden">What is Labor Burden?</h2> <p>Labor burden is the total cost of employing a worker beyond their base wage. It includes:</p> <ul> <li>Employer taxes (Social Security, Medicare, unemployment)</li> <li>Insurance (workers&rsquo; comp, liability, health)</li> <li>Benefits (PTO, retirement, etc.)</li> <li>Equipment and tools</li> <li>Training and safety</li> </ul> <p>When you pay a carpenter $30/hour, your actual cost might be $40-45/hour after burden.</p>