Electrical Employee True Cost Calculator
That $32/hr electrician actually costs you $58 to $70 per hour. See every line item here.
Employee Pay
What you pay this electrical employee per hour, before any employer costs.
Country
Mandatory employer costs change by country. Select yours.
Mandatory Employer Costs
These are required by law. You pay them on top of every dollar of wages.
Benefits You Provide
Toggle on the benefits you offer. Only include what you actually pay for.
Productivity
Not every paid hour is productive electrical work. Factor in drive time, paperwork, breaks, and downtime.
True Employee Cost
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per productive hour
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per paid hour
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fully loaded annual cost
Adjust the inputs on the left to see your numbers update in real time.
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True Employee Cost for Electrical Companies
You pay your electrician $32 an hour. But the check you write to the employee is just the start. By the time you add FICA, workers comp, health insurance, the van, and the tools they need, you are spending $58 to $70 for every hour they are on the clock.
And that number still does not account for unproductive time. Your electrician is not billing customers for 40 hours a week. After drive time, inspection waits, parts runs, and estimates, most electricians bill 60% to 70% of their paid hours.
This calculator breaks it all down so you can see what each employee actually costs your electrical business.
Mandatory Employer Costs for Electrical
Before you offer any benefits, mandatory costs add 18% to 22% on top of an electrician wages. Employer FICA is 7.65%. State unemployment runs 2% to 5%. Workers comp for electrical classifications is 3% to 6%. On a $32/hr journeyman, those costs add $5.75 to $7.00 per hour. That is $12,000 to $14,500 per year per electrician in costs you pay before a single benefit is included.
The Productivity Gap in Electrical
Electrical work has a unique productivity challenge: inspection wait times. Your journeyman finishes a rough-in by 2pm, calls for inspection, and waits 60 to 120 minutes for the inspector. That is paid time with zero billable output. Add in drive time, parts pickup, estimating, and training days, and most electricians bill 60% to 70% of paid hours. If your total annual cost per electrician is $100,000 and they produce 1,350 billable hours, your cost per productive hour is $74.
Tips for Electrical Employee Costing
- Inspection wait time is pure cost. Schedule inspections first thing in the morning and have your electrician start a nearby job while waiting. Even saving 30 minutes per inspection adds up to 100+ hours per year.
- Apprentices cost less in wages but their fixed costs (van, tools, insurance) are similar. Their burden multiplier is often 2.5x to 3x because the denominator is smaller. Track them separately.
- A $32/hr electrician with an $850/month van adds $4.90/hr just for the vehicle. That is $10,200 per year. Make sure your billing rate accounts for it.
- License renewal, continuing education, and code book updates cost $500 to $1,500 per electrician per year. Small numbers that add up when you have 5 or more electricians on the team.
Frequently Asked Questions
How much does an electrician really cost per hour to employ?
An electrician making $32 per hour costs $58 to $70 per hour when you add employer FICA at 7.65%, workers comp at 3% to 6%, health insurance, PTO, van costs, and tools. The burden multiplier for electrical work is typically 1.8x to 2.2x base wages. A journeyman electrician at $32/hr with benefits and a service van runs $58 to $70 per hour in total employer cost.
What is the labor burden rate for electrical contractors?
Electrical labor burden is 25% to 35% for mandatory costs alone (FICA, unemployment, workers comp). Total burden with benefits, van, and tools reaches 80% to 120% of base wages. A journeyman at $32/hr with full benefits costs $58 to $70/hr. Apprentices cost less in wages but have similar fixed costs, so their burden percentage is actually higher.
What is workers comp for electricians?
Workers comp for electricians runs 3% to 6% of gross payroll. Residential wire pulls are rated lower than commercial or industrial work. A $32/hr electrician with a 4% workers comp rate costs you $1.28/hr for that one item. That is $2,662 per year per electrician. If you do panel upgrades or service work at height, expect higher rates.
What percentage of an electrician time is billable?
Electrical contractors typically see 60% to 70% of paid hours as productive. A journeyman paid for 2,080 hours per year bills 1,250 to 1,450 hours. The rest goes to travel, inspection wait times, parts pickup, estimating, and training. Inspection wait time is a cost unique to electrical. A tech waiting 90 minutes for an inspector is 90 minutes of paid, unproductive time.
How do you calculate the fully burdened cost of an electrician?
Annual gross pay: $32/hr times 2,080 = $66,560. Add mandatory costs: FICA ($5,092), FUTA ($400), state unemployment ($1,797), workers comp ($2,662). Add benefits: health insurance ($7,200), PTO ($2,662), van ($10,200/yr), tools ($3,000/yr). Total: roughly $99,570. Divide by 1,350 productive hours and the real cost is about $74 per productive hour.
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