# Labour Cost Build-up Calculator

Day rate build-up with overheads, levies and tax.

- Page: https://jianzhujisuan.com/en/labor-cost
- Category: Costing (https://jianzhujisuan.com/en/c/costing)
- Chinese version: https://jianzhujisuan.com/zh/labor-cost.md
- Data checked: 2026-10-25

## Quick result

With the default inputs (Man-days 100 man-days, Day rate 350 CNY, Overhead rate 12%, Statutory levy 5%, Tax rate 9%): **Gross labour cost 44636 CNY**

## Inputs

| Parameter | Type | Default | Unit | Note |
|---|---|---|---|---|
| Man-days | number | 100 | man-days |  |
| Day rate | number | 350 | CNY |  |
| Overhead rate | number | 12 | % | Site management and facilities, 8-15% |
| Statutory levy | number | 5 | % |  |
| Tax rate | number | 9 | % | 9% general method, 3% simplified |

## 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

## Worked example

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.

## Questions

### 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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Generated by BuildCalc. All calculations run in your browser; no data is uploaded. Formulas follow national standards and common trade practice; local codes govern.