Farm Labor Cost Calculator

Labour cost is crew hours times the wage, plus what the employer pays on top. Dividing by the area worked turns it into a per-hectare figure for budgets.

Also called: Farm labour cost calculator · Crew cost calculator

  • Last updated
  • Formula tested against reference values

Your numbers

Your pay rate. Check your local minimum agricultural wage.

Example value for payroll taxes, insurance and holiday pay. Enter your own.

Transport, meals, housing or recruitment for this job.

Result

Total labour cost
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Calculating…

Wages
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Employer on-costs
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Labour hours
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Full cost per labour hour
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Cost per hectare or acre
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Hours per hectare or acre
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How to use this calculator

  1. Enter or choose workers.
  2. Enter or choose hours per worker per day.
  3. Enter or choose days worked.
  4. Enter or choose hourly wage.
  5. Enter or choose employer on-costs.
  6. The total labour cost updates as you type. Use Copy result or Share to keep it.

Method

Hours = Workers × Hours/day × Days; Wages = Hours × Wage; Total = Wages × (1 + On-costs%) + Other; Per area = Total ÷ Area

On-costs
employer costs on top of wages, as a % of wages
Other
fixed labour-related costs for the job
Area
hectares or acres covered (results use the same unit)

Worked example

  1. Hours = 4 × 8 × 5 = 160; wages = 160 × 15 = 2,400.
  2. On-costs = 2,400 × 20% = 480; total = 2,880.
  3. Per hectare = 2,880 ÷ 12 = 240.

A four-person crew for a five-day week costs 2,880 including on-costs, or 240 per hectare over 12 ha.

What the result means

Use the per-hectare cost in crop budgets and to compare hand work with contractors or machinery. Hours per hectare is the figure to track across seasons, because it is unaffected by wage changes.

Assumptions and limits

  • Every worker works the same hours on each day.
  • On-costs are a flat percentage of wages.
  • Overtime premiums and piece rates are not modelled; enter an average hourly rate instead.
  • Statutory wage and payroll rules are not applied.

Questions

What goes into on-costs?

Typically employer payroll taxes or social contributions, workers’ compensation or liability insurance, paid leave and any benefits. The mix and rates depend on your country.

How do I handle piece-rate pickers?

Divide the total paid by hours worked to get an average hourly rate and enter that as the wage.