1. What is the UK Government Employee Cost Calculation?

The UK Government standard calculation for employee cost per hour divides the annual cost by 1950 working hours per year. This provides a standardized way to compare and budget employee costs across government departments.

2. How Does the Calculator Work?

The calculator uses the standard UK government formula:

Where:

• Annual Cost — Total employment cost including salary, benefits, and overheads (GBP/year)
• 1950 — Standard working hours per year for UK government calculations

Explanation: The 1950 working hours is based on 37.5 hours per week for 52 weeks, minus average leave and public holidays.

3. Importance of Cost Per Hour Calculation

Details: Accurate cost per hour calculation is crucial for government budgeting, project costing, and cost-benefit analysis of public services.

4. Using the Calculator

Tips: Enter the total annual employment cost in GBP. The calculator will automatically divide by 1950 to give the hourly rate.

5. Frequently Asked Questions (FAQ)

Q1: Why 1950 hours?
A: This is the UK government standard based on 37.5 hour weeks minus average leave and public holidays.

Q2: What should be included in annual cost?
A: Salary, employer NI contributions, pension contributions, and any other employment-related costs.

Q3: Is this different from private sector calculations?
A: Yes, private sector often uses 2080 hours (40hrs × 52wks) or actual working hours minus leave.

Q4: Does this include overhead costs?
A: Only if they're included in your annual cost figure. The basic calculation is just annual cost divided by 1950.

Q5: How often should this be recalculated?
A: Whenever there's a significant change in employment costs or at least annually for budgeting.