What is a loaded hourly rate?

Asked by: Celia Hoppe II  |  Last update: February 13, 2026
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A loaded hourly rate (or fully burdened rate) is the total, all-inclusive cost for an employer to have an employee work for one hour, going far beyond just their base wage to include all associated expenses like taxes, benefits (health, retirement), paid time off, and overhead (office costs, equipment), providing a true picture of labor expenses for budgeting and pricing. It's also known as an "all-up rate" or "rolled-up rate" in some contexts, bundling allowances, penalties, and overtime into a single figure for casual or shift workers.

What does "loaded hourly rate" mean?

Loaded Hourly Rates means billing rates that are all-inclusive and must reflect direct labor costs, including fringe benefits, overhead and profit.

How to calculate a loaded rate?

1 Direct pay, plus a portion of “overhead,” equals a team member's “fully-loaded” rate. 2 Step 1: Calculate the team member's direct costs. 3 Step 2: Add up your organization's total overhead (or get it from accounting). 4 Step 3: Divide overhead among your team to find their fully-loaded rates.

What is a loaded employee cost?

Calculating the Total Fully Loaded Cost

The formula is straightforward: add all compensation, benefits, taxes, equipment, overhead, and one-time costs, then divide by the number of employees if calculating an average. A typical multiplier ranges from 1.25 to 1.4 times base salary for standard benefits packages.

What is a fully loaded pay rate?

The phrase "fully loaded" appears in 88 going back to 1957 and in 144 GAO protest decisions. They are mostly applied to labor. The phrases indicate that the costs of employee benefits, applicable indirect costs, and profit are to be, or have been, added to a direct cost rate, usually a labor rate.

How to Calculate your Labor Burden

26 related questions found

How much is a $40,000 salary hourly?

$40,000 a year is approximately $19.23 per hour, assuming a standard 40-hour workweek (2080 working hours per year), calculated by dividing the annual salary by 2080 hours. This breaks down to about $769 per week, or roughly $3,333 per month before taxes, depending on your specific work schedule and pay frequency, says Snagajob, GOBankingRates, and Jobsora.com. 

What is hourly loading?

It's an extra 25% added to the base hourly rate to compensate casual employees for not receiving paid leave, notice periods, or job security. Is casual loading on top of minimum wage? Yes. Casual loading is added to the minimum base rate for permanent employees, so casual workers earn a higher hourly wage.

How much does a $20 an hour employee cost an employer?

A $20/hour employee costs an employer roughly $25 to $28 per hour, or $52,000 to $58,240 annually, by adding 25-40% for payroll taxes (FICA, unemployment) and benefits (insurance, PTO), though specific costs depend heavily on location, benefits, and industry, with total costs potentially reaching 1.4 times the base wage or more. 

How is the loaded cost rate calculated?

Direct labor multiplier formula: The direct labor multiplier formula is a calculation used by consultants and businesses to determine the fully loaded cost of labor. This formula takes into account various factors such as salary, benefits, overhead costs, and expenses associated with a particular position.

What are the 4 types of costs?

The four primary types of costs often discussed in business and accounting are Fixed Costs, Variable Costs, Direct Costs, and Indirect Costs (or Overhead). Fixed costs stay the same regardless of production (rent), while variable costs change with output (raw materials); direct costs link to specific products (labor), and indirect costs support general operations (utilities). 

What is $45,000 salary per hour?

$45,000 a year is approximately $21.63 per hour, assuming a standard 40-hour workweek (2080 work hours per year), calculated by dividing the annual salary by 2080. This breaks down to about $865 per week and $3,750 per month before taxes. 

How much does a $15 an hour employee cost?

A $15/hour employee costs significantly more than just wages, typically 1.25 to 1.4 times their base salary, meaning roughly $39,000 to $50,000+ annually, due to payroll taxes (like Social Security & Medicare), workers' comp, benefits (health, PTO), recruitment, training, and overhead, with $31,200 being the base annual wage for full-time work ($15 x 2080 hours). The total "fully loaded" cost includes mandatory contributions (FICA, FUTA, SUTA) and optional benefits like health insurance, paid time off, and hiring expenses, varying by state and company. 

What is a loading rate?

Casual loading is a payment that you must add to your casual employee's base rate of pay. The casual loading rate is usually 25% of the base rate, but this varies for different industries. The rules about calculating casual loading and penalty rates, such as overtime, also vary depending on the industry.

What is $70,000 a year hourly rate?

$70,000 a year is approximately $33.65 per hour, calculated by dividing the annual salary by 2,080 work hours (40 hours/week * 52 weeks/year). This standard calculation assumes a full-time, 40-hour workweek, but your actual hourly rate can vary if you work different hours or get paid for holidays and vacation time. 

How to calculate a loaded labor rate?

How to calculate labor burden: 4 steps

  1. Gross pay: $25 × 40 = $1,000 per week.
  2. Total benefits and taxes: $300.
  3. Total overhead costs: $200.
  4. Burden rate = (gross pay/total labor burden​) × 100%
  5. Total labor burden: $1,000 + $300 + $200 = $1,500.
  6. Burden rate: ($1,500 ÷ $1,000) × 100% = 150%

Is $25 an hour a good rate?

Yes, $25 an hour (about $52k/year) is generally considered a decent to good wage in many parts of the U.S., offering a "living wage" for a single person in most areas, allowing for basic needs and some savings, but it's much better in lower-cost-of-living areas than in expensive cities like San Francisco or NYC where it might be tight. Benefits (health insurance, PTO) and your personal financial obligations (family, debt) heavily influence how "good" it feels. 

What is a fully loaded hourly wage?

The fully burdened labor rate is the total cost a company incurs to employ a worker, beyond just their base salary or hourly wage. It includes additional expenses such as benefits, payroll taxes, paid time off, training, travel, equipment, and other overhead costs.

How to calculate the fully loaded cost of an employee?

Here are the steps to determining total employee cost:

  1. Step 1: Calculate gross wages. ...
  2. Step 2: Factor in payroll taxes: This includes federal, state, and local income taxes (if applicable), as well as unemployment taxes. ...
  3. Step 3: Add benefits. ...
  4. Step 4: Add other expenses. ...
  5. Step 5: Calculate cost.

How to calculate the loading rate?

How To Calculate Loading Rates

  1. Calculate the hydraulic loading rate with the formula: Hydraulic loading rate = Design flow (gal/day) / Area (feet ^2). ...
  2. Calculate the organic loading with the formula: Organic matter = (BOD5 (mg/l) * 3.785 l/gal) / 453,600 mg/lb.

What is a loaded salary?

It goes beyond the base salary and includes benefits, taxes, recruitment, and overhead—offering a complete picture of what each hire truly costs.

What is $60,000 a year hourly?

If you make $60,000 a year, your hourly salary would be $28.85.

Is 20$ an hour good pay?

$20 an hour ($41,600/year) is a decent wage in areas with a low cost of living but is often not enough for a comfortable living wage in expensive cities, especially for supporting a family, though it's significantly better than minimum wage and allows for some savings if you budget carefully. Its "goodness" depends heavily on location, your budget, dependents, and lifestyle choices. 

Do employers have to pay loading?

Annual leave loading is included in ordinary time earnings (OTE). As such, employers are required to pay superannuation contributions on this amount.

What is a casual loading rate?

Casual loading refers to the additional payment casual employees receive per hour. The amount of casual loading a casual employee receives generally depends on the awards and agreements that apply to their position. Generally, the casual loading rate that applies to a casual employee's regular hourly rate is 15-25%.

Do you get paid more after 6pm?

Casuals get 150% (inclusive of their 25% casual loading). Fair Work Ombudsman so on the website the award states minimum is 33.19 hourly rate then after 6pm is 39.83.