Understanding Employee Costs: How Do You Calculate Expenses Per Minute?

Calculating Employee Expenses Per Minute

To calculate an employee's expenses per minute to the company, including costs such as food, transport, and salary, you can follow these steps. First, determine the total amount spent on these expenses for a specific period, like a week or a month. Next, calculate the total number of minutes the employee worked during that period. Finally, divide the total expenses by the total minutes worked to get the per-minute cost to the company.

This calculation can help employers understand the real cost of each minute an employee spends on the job, taking into account various expenses beyond just the basic salary. By having a clear picture of these costs, companies can make more informed decisions regarding resource allocation and budgeting.

Calculating Employee Costs Per Minute

Find out the total cost for each employee as per your organization's norms. If it is a monthly rate (amount), multiply it by 12 and then divide by 365 to obtain the one-day expense.

Now, divide the one-day expense by 8 to obtain the per-hour expense, and then divide by 60 to obtain the per-minute expense.

Regards, S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions [Phone Number Removed For Privacy-Reasons] [Email Removed For Privacy Reasons]