Actual costs of employees?

[bacon]

Like to work out the cost to us (the employer) - an hourly rate of £8.00ph for a semi skilled machine driver (construction).

Obviously no desk, phones etc. but NI, holidays, sick, uniform, breakages etc

Is it simply 2 - 2.5 x annual salary?

Can someone then equate this back into an hourly rate?

Be good to work out as I need to make sure that my hourly rates are covering this overhead.

Employers NI will cost 11% of gross pay. Other costs are entirely individual to the job - can't give a general % that will cover all costs. you need to sit down and think of all costs that would be incurred directly due to employing this person for a year, work out how many hours they will actually work in a year then divide up the overheads over this number of hours.

Employer NI is 12.8% of gross pay.

Holiday is factored into annual salary - just multiple the hourly rate up to get weekly, add on NI and multiply by 52 (assuming it isn't seasonal work).

Sick pay won't cost over and above salary - even if you pay sick leave it's instead of salary. Sickness cover you would need to work out if you needed.

Uniform and breakages, you'd have to guess.

Found this helpful site www.itcenta.co.uk/it-support/employee-cost-calculator

A salary of around £18,000 costs us £20.26ph working on a 90% effeciency as hubby has them grafting.

Very helpful for people like us employing staff and under pricing jobs.

Also helpful if you think about leaving your current job to go self employed and thinking about employing staff. I can see why so many small companies fail as £160 per day is a high cost to carry.