Dinesh Divekar
Business Mentor, Consultant And Trainer
Manager Hr
+1 Other

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Hello HR members i would like to know , what should be the ideal percentage cost of salaries and wages in total project budget. Harin
Dear Harinath,
Projects are of all hues. What type of project you are referring to?
Any project comprises of material cost + operations cost + employee cost. The break up of the costs will vary from one project to another. There is no hard and fast rule as such.
If there are multiple projects of similar nature then there could be capital cost as well. Where to assign the cost if the capital equipment is used for multiple projects? For example, concrete mixer used in construction projects, is used in many projects. Now where to assign this cost? In corporate account?
Please clarify about your query.
Dinesh Divekar

how do u get into cost component as a free lance recruiter.
if it is a theoretical question or a hypothetical question it is very difficult to give an answer.
if it is an IT project the salary component will be of high percentage
if it is a mechanical or civil project it may be low
it is not possible to lay down a fixed percentage
dr ram

I am referring to cost/expenses concerning employees/staff.
I have observed mft,infra or construction companies maintain 5%-10% and IT companies 50-80% as employee expenses of tatal expenditure.
is there any financial analysis or ratios in allocation of employee expenses.?

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