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Cost to employer

  • 21-05-2021 5:30am
    #1
    cianlynchali
    Registered Users, Registered Users 2 Posts: 86 ✭✭


    Hi . I'm equiring to see what cost is it to a employer to pay someone 22 euro a hour.
    Employer prsi
    Holidays and bank holiday
    Insurance. 50 a week.
    Take a 40 week. Gross of 840 paid to employe.
    What rate a hour would I want to be charging?. Thanks


Comments

  • #2
    Rulmeq
    Registered Users, Registered Users 2 Posts: 1,101 ✭✭✭Rulmeq


    I'm going to make some assumptions here: 8 hours per day, and 260 possible days per year (5 x 52) holidays would be 21 days, and public holidays would be 9, giving a total of 30 (adjust if you're being more generous with the holidays)

    €22 x 8 x 230 = €40,480 (wages)
    €22 x 8 x 30 = €5,280 (Holiday pay)

    Total = €45,760

    Employers PRSI (based on weekly income being more than €424 is calculated at 11.05% assuming class A) would be €5,056.48

    Total cost of wages + employers PRSI would be €50,816.48 (if you want to try and get an hourly rate, just reverse the calculation above: (€50k / 260) / 8 gives approx: €24.45 per hour.


  • #3
    Buddy Bubs
    Registered Users, Registered Users 2 Posts: 4,492 ✭✭✭Buddy Bubs


    cianlynchali wrote: »
    Hi . I'm equiring to see what cost is it to a employer to pay someone 22 euro a hour.
    Employer prsi
    Holidays and bank holiday
    Insurance. 50 a week.
    Take a 40 week. Gross of 840 paid to employe.
    What rate a hour would I want to be charging?. Thanks


    Rate per hour depends on many factors, both in your control and out of your control.
    Overheads, competition, what the market will pay etc...

    If you had one employee which poster above calculated will cost you 50k a year to employ, your overheads/costs are another 50k and you want to make 50k yourself, your hourly rate to charge out will be

    150000/no of possible billable hours

    230 working days is 1840 hours at full days billable and no sick leave/down time gives me a billable rate of 81.50 per hour

    If you had 2 employees billable and all costs remained the same you would then need to charge out 200k

    Employees x 2 @50k, overheads at 50k, your salary at 50k

    Now you have 200k/billable hours which is about 55 euro per hour

    So you see the economies of scale kicking in....

    So depends on your numbers in your own business. Overheads could remain the same up to a point then need to take a steep jump as you move from 4 to 5 employees etc....

    For what it's worth and a simple answer....my company charges out minimum of 180 euro for electricians who earn about the same as the 22 euro per hour in your example, this covers 2 hours. An hour to get to customer and an hour to do job. Additional hours billed at 90 euro per hour.

    Don't always get full 8 hours billed out for them but they get paid 8 hours so that needs to be factored in.

    90 to 22 might seem like huge profit margin but they have a van, tools, insurance, down time, canceled calls plus contribution to fixed overheads in that figure


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