Staffing Bill Rate & Manpower Costing Calculator

About the Staffing Bill Rate & Manpower Costing Calculator

Price staff the way a staffing agency or a manpower contractor has to: from the pay rate through every employer cost to the bill rate you quote.

• Contract staffing. Enter a pay rate an hour, a day, a month or a year. The calculator adds the employer’s costs — in the United States social security and Medicare, FUTA, your state unemployment rate, workers’ compensation by job class, benefits and paid time off; in the United Kingdom employer National Insurance, the workplace pension, rolled-up holiday pay and the Apprenticeship Levy; anywhere else the cost lines you type — to get the loaded cost per worked hour, then the bill rate from a markup on pay, a markup on cost or a target gross margin, with markup and margin converted both ways. A rate card prices many roles at once.
• India manpower contract. The monthly costing sheet of one post — security guard, housekeeping, driver, data-entry operator or your own — that tenders ask for: the state minimum wage and VDA, employer EPF with EDLI and admin charges (on wages up to the ceiling or on full wages), ESI when the wage is within the limit, statutory bonus, leave and holiday wages, gratuity provision, uniform, a reliever for the weekly off, the agency’s service charge and GST.
• Permanent placement. The fee as a % of first-year CTC or a flat fee, the tax on it, and what each refund slab of the replacement guarantee gives back.

Without a pass, the free preview shows the final bill rate in full, with every line of the breakdown named and its amount hidden; the breakdown, the rate card, the Excel workbook and the PDF quotation come with a Premium pass.

Markup or margin?

A markup is a share of the cost (or of the pay) added on top; a margin is a share of the bill rate. The same price gives a bigger markup than margin: a 25% markup on cost is a 20% margin (25 ÷ 125), and a 25% margin needs a 33.33% markup (25 ÷ 75). Staffing firms often quote a markup on the pay rate, which has to cover the employer’s costs as well as the profit, so the calculator shows the margin that is left after the loaded cost.

United States employer costs

The employer pays social security of 6.2% on wages up to the year’s wage base ($184,500) and Medicare of 1.45% on all wages (IRS Topic no. 751), and federal unemployment tax (FUTA) of 6.0% on the first $7,000 of each employee’s wages, less a credit of up to 5.4% for state unemployment tax paid on time — 0.6% after the full credit, more in a credit-reduction state (IRS Topic no. 759). State unemployment tax and workers’ compensation depend on your state, your history and the job’s class code, so you enter them. Wage bases are yearly, so a short assignment pays FUTA and SUTA on a larger share of its wages: enter the weeks of work.

United Kingdom employer costs

Employer National Insurance is 15% of pay above the secondary threshold of £5,000 a year, with 0% up to £50,270 for employees under 21 and apprentices under 25 (HMRC’s rates and thresholds for employers); thresholds are worked out for the weeks on assignment. A worker earning at least £10,000 a year is enrolled in a workplace pension, and the employer pays at least 3% of qualifying earnings between £6,240 and £50,270 (The Pensions Regulator, GOV.UK). For irregular-hours and part-year workers, holiday can be paid as rolled-up holiday pay of 12.07% of pay (GOV.UK guidance on holiday pay). The Apprenticeship Levy (0.5% of a pay bill over £3 million) and the Employment Allowance are per employer, not per worker.

The Indian manpower costing sheet

• EPF: the employer pays 12% of EPF wages — 8.33% of wages up to the ₹25,000 ceiling to the pension scheme, the rest to EPF — plus EDLI of 0.5% and admin charges of 0.5% (S.O. 5109(E), EPFO’s wage-ceiling FAQs). Wages are the Code on Social Security, 2020 definition with its 50% rule.
• ESI: 3.25% of the gross wages when they are within ₹21,000 a month (ESIC), rounded up to the rupee.
• Statutory bonus: at least 8⅓% of the wages of an employee earning up to ₹21,000 a month, worked out on ₹7,000 or the minimum wage, whichever is higher, and at most 20% (Code on Wages, 2019, s.26; the Code leaves both amounts to notification, and those of the Payment of Bonus Act carry over until new ones are notified).
• Leave with wages: one day for every twenty days worked (OSH Code, 2020, s.32) — 15 days for 300; paid holidays as your state’s law gives.
• Gratuity provision: 15 days’ wages a year, wages × 15 ÷ 26 (s.53 of the Code on Social Security) — 4.81% a month.
• Reliever: a post covered seven days a week by staff who work six days needs a reliever for the seventh day, which costs one sixth of the regular cost.
• Service charge and GST: the agency’s charge on the cost, and GST (18% on manpower supply) on both.

Placement fees and refund slabs

A permanent-placement fee is usually a percentage of the candidate’s first-year CTC (8.33% is one month of a twelve-month salary) or a fixed amount. A replacement guarantee promises a refund, or another candidate at no extra fee, if the candidate leaves soon after joining: the slabs give back a smaller share the longer they stay. Write the slabs into your agreement — the Recruitment Services Agreement Generator drafts one.

Limitations

• Statutory rates change, so confirm every rate against the official notifications before you quote.
• The minimum wage and VDA differ by state, zone and skill category and change when the state revises them: they are not filled in for you.
• Taxes are worked out as a share of pay over the year; payroll software that works them out pay period by pay period can differ by a few cents an hour.
• This is a costing and pricing estimate, not tax or legal advice: check reverse charge, registration and contract terms with your adviser.

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