Because Soigné handles pay for your restaurant, we know what employees get paid and what the employer needs to pay on top of the net wage, such as social security contributions, pension contribution, etc.
Cost per hour is calculated as follows:
Cost per hour = Gross hourly wage + Vacation allowance + Social security / pension contributions + Monthly costs + One-off costs
Gross hourly wage
The basis of cost per hour is the gross hourly wage.
For an on-call employee:
Hourly wageFor a fixed contract employee:
Hourly wage = (Monthly salary x 12) / 52 / Full-time hours per week
Contributions and other directly relatable costs
On top of the gross wage, we add costs that are directly related to the hours worked. These costs are spread across the shifts worked, hours on leave and sick hours.
Vacation allowance reservation
For most restaurants, holiday allowance is paid once a year in May. That does not mean that the cost per hour is suddenly higher in May. Instead, we reserve the holiday allowance each month, so the holiday allowance is also inside the cost per hour.Vacation hours payout
Only for on-call contracts. They get their vacation hours paid out directly.Social security contributions (WGA, ZVW, etc)
Pension contribution (employer part)
HoP (Horeca ontwikkel platform) employer contribution
Meal contribution
Spread across worked hoursTravel allowance
Spread across worked hours
Monthly & one-off costs
Apart from the directly attributable costs above; these are the costs that are spread evenly across all hours (whether they were sickness, leave or worked hours):
Monthly allowances, such as a phone/tablet allowance;
One-off bonuses;
Incidental overtime or vacation hours payout
Sickness
Sickness gets paid out at 95, 75 or 70%. The cost per hour will reflect that percentage. Most contributions are also paid for sickness hours.
The cost per hour for a wait day (the unpaid waiting day at the start of sick leave) is 0, unless you decided to compensate it with paying out overtime.
Leave and special leave
Some special leave types are paid back by the UWV. We still consider these employer costs.
Cost per hour on a public holiday
The cost per hour is increased by 50% (when the employee is entitled to it).
Overtime
Overtime is put on the employees' balance and not paid out. But, we still count it as an employer cost. Therefore, when looking at the total costs for one month of an employee, it won't always exactly align with the employer costs paid (to the employee, tax authority, etc)
Unapproved and no-clockout hours
For hours that are not yet approved, we estimate the cost per hour, based on the other hours already worked and approved. This is because hours will only be added to the payslip of the employee after they have been approved.
Attendance (shift) costs
The total cost of a worked shift is calculated based on the minutes worked:
Attendance cost = Minutes worked x Cost per hour / 60
Cost per hour on the employee profile
On the employee profile, the cost per hour is shown as a metric. Because it is sensitive information, it is hidden by default. Click the eye icon to reveal or hide the value. This metric is only visible to managers with employment read access.
The value shown is always based on today's data. It uses the employee's latest approved attendance.
Cost per hours for freelancers
The freelance rate you agreed on.
Why does cost per hour change over time?
The cost per hour can differ when comparing different periods. There are several reasons for this:
1. Changes in salary
If an employee receives a salary increase, the cost per hour changes immediately.
2. Changes in employer costs
Social security rates, pension premiums, or other employer contributions can change, for example at the start of a new year.
3. Small rounding errors
You might see a one cent difference between two shifts. This is caused by a rounding error and is expected. The cost per hour is a representation of the wage costs, not used for pay or accounting purposes.