In workforce planning and job costing, it’s essential to understand not only what employees are paid, but what they truly cost the business. Employee expenses include not just salary or hourly wages, but also indirect costs like healthcare, insurance, and other benefits, collectively referred to as the burden cost.
The Total Hourly Cost with Burden Breakdown feature introduces a clear and structured way to capture this in Odoo, helping HR, finance, and project teams make more informed budgeting and labor decisions.
Key Features & Benefits:
Breaks Down Total Hourly Labor Cost
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Adds two new fields in the Employee Form > HR Settings tab:
- Employee Hourly Cost (direct pay rate)
- Burden Cost (indirect company-paid costs like benefits, taxes, insurance)
Auto-Calculated Total Hourly Cost
- The sum of both fields is automatically computed and shown in the existing Hourly Cost field, which is now relabeled as "Total Hourly Cost".
Supports Project and Financial Reporting
- Enables project managers and cost accountants to see the full hourly cost of labor.
- Helps with more accurate job costing, quoting, and payroll allocations.
Clear Field Descriptions for Easy Use
- Designed with clear labels and descriptions to make it simple for HR and finance teams to populate and understand.
Seamlessly Integrated
- Appears under Application Settings in the employee record.
- Works alongside existing HR, payroll, and timesheet features.
Example Use Case:
An employee earns $20/hour as base pay. The company also pays an additional $5/hour in benefits and insurance.
🔹 The HR team enters:
- Employee Hourly Cost = 20
- Burden Cost = 5
🔹 The Total Hourly Cost field automatically shows 25, representing the true cost per hour to the company.
This figure can now be used for labor analysis, customer billing, or internal cost reports — giving decision-makers better financial insight.
Summary:
The Total Hourly Cost with Burden Breakdown feature improves cost transparency in Odoo’s HR module by separating pay rate and indirect employment costs, then combining them into a fully burdened hourly rate. It supports better labor cost planning, project profitability analysis, and payroll forecasting.
Perfect for organizations that need to understand and manage the real cost of labor beyond take-home pay.
Total Hourly Cost With Burden Breakdown