Builds an operative's all-in hourly charge rate: full annual wage, employer NI and pension, travel, overhead and profit, divided by net productive hours.
Tender-stage indicative only, CIOB Code of Estimating Practice / Spon's method.
For estimating guidance only. Verify rates against current CIJC/HMRC figures and your own overheads.
About this all-in labour rate calculator
This free all-in labour rate build-up calculator converts an operative's basic hourly wage into the all-in hourly charge rate you need at tender. It assembles the full annual cost of employing one operative, the whole year's wage including paid non-productive time, employer National Insurance and pension, travel and fares, plus overhead and profit. Then divides that total by the net productive hours actually worked. It is built for UK building-services and construction estimators pricing labour for CIJC-graded operatives, and every regulatory figure (NI rate, thresholds, pension band, working week) is an editable input so the rate stays transparent and re-datable. All figures exclude VAT.
How the all-in labour rate is calculated
The method follows the CIOB Code of Estimating Practice and Spon's all-in rate approach. First the productive hours are found: paid hours per year (guaranteed weekly hours × paid weeks) minus non-productive hours (holiday, training, sickness and inclement-weather days × hours per day). The annual employment cost is then built up, wage over productive and non-productive time, employer NI of max(0, wage − secondary threshold) × NI%, pension of max(0, min(wage, UEL) − LEL) × pension%, and travel, before applying overhead and then profit. The all-in rate is total annual cost ÷ net productive hours. Defaults reflect UK 2025/26 figures: employer Class 1 NIC at 15% above the £5,000 secondary threshold (HMRC), auto-enrolment pension at 3% of the £6,240–£50,270 qualifying band (GOV.UK/TPR) and the 39-hour CIJC standard week.
Frequently asked questions
Why divide by productive hours and not paid hours?
An operative is paid for holidays, training, sickness and lost time, but only recovers cost on the hours actually worked. Spreading the full annual cost over the smaller productive figure (here about 1,700 hours) is what lifts the basic wage to a realistic charge rate, dividing by paid hours would understate it.
Are the NI and pension figures up to date?
The defaults use UK 2025/26 values, employer NI 15% above a £5,000 secondary threshold, and a 3% employer pension on the £6,240–£50,270 qualifying-earnings band. They are editable inputs, so update them when HMRC or auto-enrolment limits change. Employment Allowance and construction levies (CITB) are not modelled separately; absorb them in the overhead percentage.
What if non-productive days exceed paid time?
If the holiday, training, sickness and weather days add up to more than the paid hours, net productive hours fall to zero or below and the all-in rate is undefined. The calculator shows an information note instead of a figure. Reduce the non-productive days or increase the paid weeks or hours.