Labor Costs

Labor costs refer to the total expenses a business incurs to pay its employees. This includes wages or salaries, wages for overtime, benefits like health insurance and retirement contributions, payroll taxes, and any other compensation-related expenses. These costs can vary based on employee skill levels, hours worked, and local regulations. Labor costs are a significant part of a company's overall expenses and directly impact pricing, profitability, and competitiveness. Tracking labor costs helps businesses manage budgets effectively and ensure they are compensating employees fairly while maintaining financial health.