Industry Guide
What Is Labor Burden in Construction? Why $30/Hour Actually Costs $42
Labor burden is the gap between the hourly rate on a pay stub and the fully-loaded cost the employer actually bears for that hour of work. In construction, labor burden typically runs 30-50% on top of direct wages — and getting the rate right is the difference between bids that win profitably and bids that win unprofitably.
Marcus Reyes8 min read