Cost Labour
Definition
The Cost Labour KPI refers to the total amount of money spent in a set period in order to employ staff.
Characteristics
Relates directly to the number provided in the Headcount KPI
Include | Don’t include |
|
|
Calculation
∑ of salaries/wages (gross + incidental costs) |
= Cost Labour |
Alias | Payroll Costs/Salaries/Wages |
Abbreviation | CL |
Unit | Currency (Euro/Dollar/YEN/…) |
Example
A company has two employees. The employees each receive 1.500 € net per month. The company has to pay 2.500 € for each employee (gross salary + incidental labour costs). Cost Labour is therefore calculated as follows:
2 × 2.500 € |
= 5.000 € |

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