XL EagleBurdened Labor Rate
Burdened Labor Rate. A burdened labor rate is the cost of one hour of work after adding fringe, overhead and G&A to the base wage. A fully burdened rate, also called a fully loaded rate, usually adds profit too.
T&M and labor hour contracts use fully burdened rates, so every cost has to be inside the hourly figure.
Why it matters to a small contractor
When a prime asks for your labor rates, ask if they want burdened or fully burdened. The difference can be 10 percent or more of your price.
Example
A wage of $28 burdened with fringe, overhead and G&A becomes $47. Adding 10 percent profit makes the fully burdened rate $51.70.
Burdened Labor Rate: common questions
Is burdened the same as billing rate?
A fully burdened rate is usually your billing rate. A burdened rate without profit is your cost.
Do wage determinations set my burdened rate?
No. They set minimum wages and fringe. You add the rest.
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