Calculating the Cost of a Salaried Employee’s Shift
The cost of the shift for a salaried employee is based on the number of shifts that the employee has in a week. Nory bases a week on 5 working shifts.
For instance, let’s assume Eliza is a salaried employee with an annual salary of €30,000. We use the following formula to determine her cost per shift:
Salary / 52 weeks / 5 shifts = Cost per shift
Therefore, Eliza’s cost per shift would be calculated as follows:
€30,000 / 52 / 5 = €115.39
When shifts are added to the schedule, we can see that each shift takes exactly €115.39 until there are 5 shifts in the schedule.
Schedules with more than 5 shifts
When there are more than 5 shifts, the cost of labour for the week gets equally apportioned between all the shifts.
For example, let's say Eliza have 6 shifts in a week. Then the cost for each of her shifts is calculated as follows:
€30000 / 52 / 6 = €96.15
Note: In the above examples, the labour contributions are turned off to show the exact split of cost. If it’s considered, the contributions will be added on top of each shift’s wage.
Comparing Labour Cost : Schedule Vs Timecards
The Cost of Labor (COL) shown in the schedule and the timecards will not align because the schedule factors in labor contributions and holiday accruals, while the timecards do not account for these considerations. As a result, there will be differences between the labor costs in the schedule and the actual labor costs recorded in the timecards.