How to calculate the labor cost?

Labor costs = total wages of employees+social insurance costs+welfare costs+education costs+labor protection costs+housing costs+other labor costs.

Labor cost refers to the sum of all direct and indirect expenses paid by enterprises for production, operation and provision of labor services in a certain period of time.

Composition of labor cost:

Direct cost: the direct income of employees, including wages, bonuses, overtime pay, bonuses, post allowances, severance pay, etc. In other words, the direct cost is the remuneration paid directly to employees by enterprises in the form of money.

Indirect costs: enterprises pay but employees may not get them directly, including social insurance, commercial insurance and housing accumulation fund; It also includes recruitment expenses and training expenses to increase the number or ability of enterprise personnel.

Extended data

First of all, labor costs are not equal to wages and bonuses. For example, if an enterprise pays employees 1 1,000 yuan, then the labor cost will never be direct 1 1,000 yuan, and there are other indirect expenses.

Secondly, the labor cost is not equal to the total wages. According to the document number 1997, no labor department 26 1, labor costs include total wages, social insurance expenses, welfare expenses, education expenses, housing expenses and other labor costs.

Thirdly, the labor cost is not equal to the use cost. From the classification of human resources, human cost can be divided into acquisition cost, use cost, development cost and turnover cost, which shows that "use cost" is only a part of human cost.

Baidu Encyclopedia-Labor Cost