What are the labor costs?

Labor costs (personnel costs) mainly include: total wages of employees, social insurance costs, employee welfare costs, employee education costs, labor protection costs, employee housing costs and other labor costs. Among them, the total wages of employees are the main component of labor costs. Average labor cost = total labor cost/number of people in the same period

Labor cost ratio = total labor cost/total cost in the same period * 100%

Labor distribution rate = total labor cost/added value in the same period * 100%

Labor cost is also called "labor cost". Refers to all the expenses incurred by an enterprise in putting labor factors into production and operation, including the wages and benefits paid by the enterprise to employees, and is an integral part of the total cost of the enterprise.

compose

According to the document (1997) No.261of the Ministry of Labor, the scope of labor costs includes: total wages of employees, social insurance costs, employee welfare costs, employee education costs, labor protection costs, employee housing costs and other labor costs. Among them, the total wages of employees are the main component of labor costs.

1, total wages of employees

The total wages of employees refers to the total amount of labor remuneration paid directly to all employees of the unit in the form of money in a certain period of time. Including hourly wages, piece-rate wages, bonuses, allowances and subsidies, overtime wages and wages paid under special circumstances.

2. Social insurance expenses

Social insurance expenses refer to various social insurance expenses borne by enterprises through legislation, including old-age insurance, medical insurance, unemployment insurance, industrial injury insurance, maternity insurance and supplementary old-age insurance and supplementary medical insurance established by enterprises. This labor cost only calculates the part paid by the employer, not the part paid by the individual. Because individual contributions have been included in the total salary.

3. Employee welfare funds

Employee welfare funds are employee welfare funds paid in addition to wages in accordance with state regulations. It is mainly used for medical and health expenses of employees, travel expenses for medical treatment in different places due to work-related injuries, subsidies for employees' living difficulties, cultural and sports publicity expenses, and subsidies for collective welfare undertakings (including collective welfare facilities, such as staff canteens, nurseries, kindergartens, bathrooms, barber shops, women's clinics, etc.). ), as well as cultural welfare facilities such as cultural palaces, clubs, youth palaces, libraries, stadiums, swimming pools, workers' homes, and elderly activity centers.

4. Employee education expenses

Employee education funds refer to the expenses paid by enterprises for employees to learn advanced technology and improve their cultural level. Including pre-job training, on-the-job promotion training, job transfer training, overseas training, professional ethics and other aspects of training costs, as well as the costs incurred by enterprises in setting up training places such as colleges and vocational and technical colleges and vocational skills appraisal costs.

5. Labor protection expenses

Labor protection fee refers to the cost of purchasing labor protection articles actually used by employees. Such as work clothes, health products and cooling products.

6. Employee housing expenses

Employee housing expenses refer to the expenses paid by enterprises to improve the living conditions of employees. Including staff dormitory depreciation (or staff rent), housing accumulation fund paid by enterprises, housing subsidies and housing difficulties subsidies actually paid to employees, and housing maintenance and management fees of enterprises.

7. Other costs and expenses

Other labor costs include trade union fees, employee recruitment fees, consulting fees, external employee service fees actually paid by enterprises when recruiting employees, special rewards for employees (such as invention awards and scientific and technological progress awards), and risk compensation fees for lessees and contractors who lease or lease enterprises. Compensation expenses for dissolution or termination of the labor contract.

Extended data

Labor cost refers to the monetary expression of labor consumption or living labor consumption in the process of production or construction. Labor cost is a direct component of the value of industrial or building products, and it is also an important item of industrial product cost or construction and installation engineering cost. Labor costs of construction and installation projects are represented by basic wages, additional wages and wage allowances (such as grain subsidies, winter coal subsidies, non-staple food subsidies, etc.). Workers directly engaged in construction and installation engineering (including directly making components for construction at the site) and auxiliary workers engaged in transportation and batching at the construction site.

Labor costs of construction enterprises generally include: labor costs of project budget, labor costs of project plan and actual labor costs of project. In practical work, the amount of labor costs related to industrial products or construction and installation projects can be calculated by direct collection or appropriate proportional distribution, and related cost accounts can be classified in general and in detail. In the total cost system, the level of labor cost reflects the level of production or construction technology and equipment and labor productivity to a certain extent.

International general concept of labor cost

1966 the labor cost adopted in the resolution of the 1st international labor economic conference in Geneva1/kloc-0 refers to all the expenses incurred by the employer when employing the labor force.

International common labor costs include:

Wages for completing the work; Wages for paid time without work; Bonuses and tips; Expenditure on food and beverages; Work and housing expenses borne by the employer; Employers pay social insurance fees for employees; Employees' expenditure on vocational training, welfare services and miscellaneous expenses, such as workers' transportation expenses, work clothes, health recovery and taxes regarded as labor costs.

References:

Labor cost-Baidu Encyclopedia