How to use it
- Enter the Number of Workers on the crew.
- Enter the Hours per Worker for the shift or day you are costing.
- Enter the Hourly Rate in AED. Use a loaded rate: wage plus allowances, accommodation, transport, visa and insurance costs you pay per hour.
- Read the Total Hours and the Total Labor Cost. For a longer job, multiply the cost by the number of working days.
The formula
Total hours = workers × hours per worker. Total labor cost = total hours × hourly rate.
What changes the result
The hourly rate is the figure that matters most, and a basic wage understates it. Include allowances, overtime, accommodation, transport, visas and medical insurance, then divide by the hours you pay for. A crew with several trades needs one calculation per trade, because foremen, skilled workers and labourers have different rates. Overtime has its own rate, so cost the extra hours separately or raise the average hourly rate.
Labor practice in the UAE
Standard working time is limited, and overtime is paid at a premium over the normal hourly wage, so check the current labour law and your contracts for the rates. In summer the Ministry of Human Resources and Emiratisation applies a midday work ban from 15 June to 15 September, so outdoor crews lose the hottest hours and shifts are planned early and late. Plan the working hours per day you will really be able to use.
Worked examples
- A crew of 25 workers on an 8 hour day at AED 45 an hour puts in 200 hr and costs AED 9,000.00 a day.
- A 12-man concrete pour gang working 10 hours at AED 38 an hour logs 120 hr and costs AED 4,560.00 for the pour.
- In the summer midday-break period, a skilled crew of 6 working only 6 hours at AED 60 an hour costs AED 2,160.00 for the day.
- A 40-worker formwork and steel crew on a 9 hour shift at AED 42 an hour comes to AED 15,120.00 per shift for 360 hr.
Labor cost by crew size
Printable chart| Workers | Total hours | Labor cost per day |
|---|---|---|
| 5 | 40 hr | AED 1,800.00 |
| 10 | 80 hr | AED 3,600.00 |
| 15 | 120 hr | AED 5,400.00 |
| 20 | 160 hr | AED 7,200.00 |
| 25 | 200 hr | AED 9,000.00 |
| 30 | 240 hr | AED 10,800.00 |
| 40 | 320 hr | AED 14,400.00 |
| 50 | 400 hr | AED 18,000.00 |
| 75 | 600 hr | AED 27,000.00 |
| 100 | 800 hr | AED 36,000.00 |
| 200 | 1,600 hr | AED 72,000.00 |
For an 8 hour shift at AED 45 an hour. For another shift length or rate, enter them in the calculator above.
Frequently asked questions
How do I calculate labor cost?
Multiply the number of workers by the hours each works and by the hourly rate. For a project, multiply the daily cost by the number of working days.
Does this include overtime?
Not separately. Cost the overtime hours at their own rate in a second calculation, or raise the hourly rate to an average that includes overtime.
Can I add allowances, accommodation and transport?
Yes. Add them into the hourly rate so it reflects the full cost of a working hour, not just the wage.
How do I cost a crew with different trades?
Run one calculation per trade with its own number of workers and hourly rate, then add the totals.
How do I estimate how much work the crew produces?
This calculator only gives the cost. Estimate output with the productivity calculators, then divide the labor cost by the quantity to get a cost per unit.
Related tools
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<iframe src="https://www.equipmentsfinder.com/embed/field-tools/labor-cost-estimator" title="Labor cost calculator" width="100%" height="620" style="border:0;max-width:720px" loading="lazy"></iframe> <p style="font-size:12px"><a href="https://www.equipmentsfinder.com/en-us/field-tools/labor-cost-estimator">Labor cost calculator</a> by <a href="https://www.equipmentsfinder.com">EquipmentsFinder</a></p>