Labour (Labor) Cost is the cost incurred by the employer in the employment of labours that is the amount of employee wages and benefits, plus payroll taxes paid by an employer. The Labour Cost is broken into direct and indirect costs.
For the purpose of labour cost statistics, the ILO defined as the statistics concept of labour cost comprises remuneration for work performed, payments in respect of time paid for but not worked, bonuses and gratuities, the cost of food, drink and other payments in kind, cost of workers’ housing borne by employers, employers’ social security expenditures, cost to the employer for vocational training, welfare services and miscellaneous items, such as transport of workers, work clothes and recruitment, together with taxes regarded as labour cost.
Related Definitions in the Project: The Project Cost
