Labour Cost Build-up Calculator
Day rate build-up with overheads, levies and tax.
Inputs
Result
Formula
| Base labour | man-days × day rate |
| Overheads | base × overhead rate |
| Levies | base × levy rate |
| Pre-tax | base + overheads + levies |
| Tax | pre-tax × tax rate |
| Gross | pre-tax + tax |
100 man-days at 350 with 12% overheads, 5% levies and 9% tax: 35000 base, 4200 overheads, 1750 levies, 40950 pre-tax, 3686 tax — 44636 gross, or 446 per man-day.
FAQ
Why is the quoted rate so much higher than the wage?
Because the day rate is only base labour; overheads, levies, tax and site costs such as accommodation, food, PPE, tools and transport come on top. 350 for 100 days is 35000 to the workers but 44636 quoted — 27% more. Where a subcontractor also carries idle time, rework and safety risk, mark-ups reach 40-60%.
Can statutory levies be negotiated?
No. Social insurance, housing fund and environmental charges are non-competitive and must be provided in full — no discount may touch them. Some bidders do squeeze them to cut price, then cannot pay the contributions, and a serious injury becomes both a liability and a risk to the client as well.
General or simplified tax method?
It depends on input tax credits. The general method charges 9% but credits tax on materials and plant; the simplified method charges 3% with no credits. Material-heavy civil work usually favours the general method, while labour-only packages with client-supplied materials favour simplified. Once chosen, it cannot change mid-project.
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Results are estimating aids only and are not a design basis. Construction and final accounts must follow the drawings, the applicable standards and an approved method statement. Anything affecting structural safety, shoring or falsework must be checked by a suitably qualified engineer.