Construction Labor Cost Guide
Hourly rates by trade, burdened labor calculations, and production rate estimates.
How Much Does Construction Labor Cost Per Hour in 2026?
Construction labor rates range from $25–$150+ per hour depending on the trade, experience level, and location.
- General laborer: $18–$30/hr
- Carpenter: $25–$50/hr
- Electrician (journeyman): $50–$85/hr
- Plumber (journeyman): $50–$90/hr
- HVAC technician: $50–$85/hr
- Tile setter: $35–$55/hr
- Painter: $25–$45/hr
These are base wage rates. The actual cost to employ workers (burdened rate) is 25–45% higher after taxes, insurance, and benefits.
Key Takeaways
- Electricians/plumbers: $50–$90/hr
- General laborers: $18–$30/hr
- Burdened rate = base wage + 25–45%
What Is a Burdened Labor Rate?
The burdened labor rate is the true cost of an employee per hour, including wages plus all employer-paid taxes, insurance, and benefits.
- FICA (Social Security + Medicare): 7.65% of wages
- Workers' compensation: 5–25% (varies by trade and state — roofers highest)
- Unemployment insurance (FUTA/SUTA): 2–6%
- Health insurance: $400–$800/month per employee
- General liability insurance: 2–5% allocation
Rule of thumb: Multiply the base wage by 1.35–1.50 to get the burdened rate. A $30/hr carpenter costs you $40–$45/hr fully loaded.
Key Takeaways
- Burdened rate = wage × 1.35–1.50
- Workers comp: 5–25% (highest for roofers)
- $30/hr wage = $40–$45/hr true cost
How to Estimate Labor Hours for Construction Projects
Use production rate tables (units per hour) as the foundation for labor estimates, then adjust for site conditions.
- Framing: 2–4 sq ft of wall per minute per carpenter
- Drywall hanging: 30–45 sheets per day (2-person crew)
- Painting: 100–150 sq ft per hour (walls, one coat, rolling)
- Tile setting: 40–80 sq ft per day (floor tile)
- Flooring (LVP/laminate): 100–200 sq ft per day per installer
Multiply production hours by 1.15–1.25 to account for breaks, setup, cleanup, and non-productive time.
Key Takeaways
- Use production rate tables for base estimates
- Add 15–25% for non-productive time
- Track actual vs. estimated hours to improve accuracy
How to Use This Calculator
Enter the Hourly Rate
Input the average hourly wage for workers on the job. This is the base pay before burden or overtime.
Set Crew Size
Enter the number of workers who will be on the job each day.
Add Hours and Days
Specify how many hours each worker puts in per day and the total number of work days for the project.
Get Your Total Labor Cost
See a detailed breakdown of base labor, overtime, burden costs, and the total labor cost for your project.
Labor Cost Formula
Total Labor = (Hourly Rate × Hours × Workers) × (1 + Burden Rate%/100) + Overtime CostWhere:
- Hourly Rate
- = Base wage per hour per worker
- Hours
- = Hours per day × Number of days
- Workers
- = Number of crew members
- Burden Rate%
- = Additional employer costs as a percentage (typically 25-40%)
- Overtime Cost
- = Overtime hours × Hourly Rate × 1.5 × Workers × (1 + Burden Rate%/100)
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Frequently Asked Questions
What is a labor burden rate?
Labor burden rate is the additional cost on top of an employee's hourly wage that covers payroll taxes, workers' compensation insurance, health benefits, retirement contributions, and other employer-paid expenses. It is typically expressed as a percentage of the base wage.
What is a typical labor burden rate for construction?
Construction labor burden rates typically range from 25% to 40% of the base wage. This varies by state, trade, and the benefits you offer. Common components include FICA (7.65%), workers' comp (5-15%), unemployment insurance (2-6%), and health/retirement benefits.
How is overtime calculated for construction workers?
Under the Fair Labor Standards Act (FLSA), overtime is paid at 1.5 times the regular hourly rate for hours worked beyond 40 in a workweek. Some states and union agreements may have additional overtime rules, such as daily overtime after 8 hours.
How do I estimate labor hours for a construction project?
Use historical data from past projects, industry labor productivity guides (like RSMeans), or break the project into tasks and estimate hours per task. Always add a contingency of 10-15% for unexpected delays, weather, and rework.
Should I include burden rate in my bid?
Yes. Your bid must include the fully burdened labor cost, not just the base hourly rate. Failing to account for burden is one of the most common reasons contractors underbid and lose money on projects. This calculator includes burden so your estimates are accurate.
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