In our seminar and exam questions we tend to use a simple hourly rate of pay when calculating Direct Labour costs. The reality of course is more complicated.
In addition to the money we give our employee per hour, there are National Insurance payments we need to make to the Government and now, everyone has the opportunity to be in a pension at the employers’ expense.
You will have seen the adverts!
https://www.youtube.com/watch?v=WhOp8BJa2hk