Labour Cost Build-up Calculator
Day rate build-up with overheads, levies and tax.
Quick answer
With the default inputs: Man-days 100 man-days · Day rate 350 CNY · Overhead rate 12% etc.Gross labour cost 44636 CNY
Edit the inputs below to recalculate.Inputs
Result
Gross labour cost
44636CNY
| Base labour | 35000CNY |
| Overheads | 4200CNY |
| Statutory levy | 1750CNY |
| Pre-tax subtotal | 40950CNY |
| Tax | 3686CNY |
| Gross rate per man-day | 446CNY/man-day |
| Mark-up on base | 27.5% |
| Per 1000 man-days | 44.6410k CNY |
Bases and order of application differ by jurisdiction; this tool uses the simplified route of base labour, then overheads and levies, then tax, which matches most bill-of-quantities practice. Statutory levies cover social insurance, housing fund and environmental charges — they are non-competitive and cannot be discounted. Bundling overhead and levy into one percentage makes negotiation easier.
Reverse: known result, work out one input
Enter a target result; the other inputs stay fixed and this one is worked out.
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.
How to work it out
- Establish the man-days first. A man-day is eight hours, and overtime converts at trade convention rather than labour law: four hours of continuous overtime counts as half a man-day.
- Apply the daily rate: 200-260 CNY for general labour, 350-450 for skilled trades (steel fixing, formwork, masonry, plastering), 450-600 for certificated work such as welding and lifting. State whether social insurance is included.
- Basic labour cost B = man-days × daily rate. This is the fee base, and the next three items hang off it — or off labour-plus-material-plus-plant, depending on the contract basis.
- Add overheads M = B × overhead rate, normally 10-15%, covering site management salaries, office costs and travel.
- Add statutory fees L = B × statutory rate, normally 3-6%, covering social insurance, housing fund and environmental levies.
- Pre-tax subtotal P = B + M + L; tax T = P × rate (9% under the general method for construction services, 3% under the simplified method); total including tax = P + T.
Where it goes wrong
- Converting overtime linearly. If eight hours cost 100, two extra hours are not 25 — sites bill in half-days and whole days, and overtime productivity is lower, so linear conversion understates cost.
- Mixing up the base for overheads and statutory fees. Some contracts base them on labour cost, others on labour plus material plus plant; the same 12% can differ threefold. Confirm the base before signing.
- Applying 9% to everything. Labour-only packages, client-supplied materials and legacy projects may qualify for the 3% simplified method. Choosing wrongly costs six percentage points, and the election is locked for 36 months.
- Forgetting social insurance inside statutory fees. With dedicated migrant-worker wage accounts and real-name site management, social insurance and injury cover are mandatory outgoings; omitting them makes the bid non-compliant.
Material and cost
Typical 2024-2025 daily rates: general labour 200-260 CNY, skilled trades 350-450, certificated work 450-600, with tier-one cities 20-30% higher and counties 15% lower. Overheads 10-15%, statutory fees 3-6%, VAT 9% under the general method or 3% simplified.
On site
- Labour is about 20-25% of civil works cost and 35-45% of fit-out. Take the daily rate from the local cost office's published information price rather than estimating it yourself.
- Quota labour rates diverge sharply from market rates — a quota may say 120 CNY/day where the market pays 350 — so pricing labour from quotas badly understates it. Settlement in practice follows market or package rates.
- Labour-only quotations look expensive per unit but exclude material waste and management; add 8-12% for the real all-in cost.
- Rates rise 30-50% around harvest and Chinese New Year. Any programme spanning those windows must carry the increase in the price.
Basis
- Jianbiao [2013] No.44 Composition of construction and installation costs (labour, overheads, statutory fees, tax)
- GB 50500-2013 Code of bills of quantities and valuation for construction works
- Caishui [2016] No.36 Notice on piloting VAT in place of business tax
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.
Cite this page
Use this format in reports, method statements or coursework. The link is permanent.
Building Calculator. Labour Cost Build-up Calculator. 2026-10-25. https://jianzhujisuan.com/en/labor-cost
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.