ABSTRACT
The following data is published for information only and is not used for within the calculation of rates for this publication. The exception is the calculation shown for the working hours per year.
The Working Rule Agreement includes a pay structure with general operative and additional skilled rates of pay as well as craft rate. Plus rates and additional payments will be consolidated into basic pay to provide the following rates (for a normal 39 hour week) which will come into effect from the following dates:
AUTHORS’ NOTE: AT THE TIME OF COMPILING, THE FOLLOWING CIJC RATES AGREEMENT HAD NOT BEEN ACHIEVED FOR 2016/2017 WAGE LEVELS. WE HAVE ASSUMED AN INCREASE OF 3.5%. WE WILL NOTIFY READERS OF THE ACTUAL RATES IN OUR UPDATE IN NOVEMBER/DECEMBER 2016
The following basic rates of pay are assumed effective from 27 June 2016
Rate per 39-hour week (£) Rate per hour (£)
Craft Rate 457.34 11.73
Skill Rate 1 435.72 11.17
Skill Rate 2 419.09 10.75
Skill Rate 3 392.06 10.05
Skill Rate 4 370.44 9.50
General operative 343.83 8.82
OPERATIVES
Effective from 27 June 2016
Craft operatives General operatives
£ £ £ £
Wages at standard basic rate
Productive time 44.30 wks 457.34 20,259.96 343.83 15,231.81
Lost time allowance, say 0.90 wks 457.34 411.60 343.83 309.45
Overtime, say 0.00 wks 0.00 0.00 0.00 0.00
20,671.56 15,541.26
Holiday Pay 5.80 wks 457.34 2,652.55 343.83 1,994.23
CITB Levy 0.50% year 116.62 87.68
23,440.73 17,623.17
Employer’s contributions to:
EasyBuild Stakeholder Pension(Death and accident cover is provided free) 52.00 wks 7.50 390.00 7.50 390.00
National Insurance (average weekly payment) 52.00 wks 40.68 2,115.36 25.24 1,312.54
25,946.09 19,325.71
Severance pay and sundry costs 1.50% 389.19 289.89
26,335.28 19,615.59
Employer’s Liability and Third Party Insurance 2.00% 526.71 392.31
Total cost per annum 26,861.99 20,007.90
Total cost per hour 15.55 11.58
Total cost per week 606.37 451.65
Example calculation of Price Cost of Labour in Daywork
Effective from 29 June 2016
Craft operative General operative
Rate £
Annual cost £
Rate £
Annual cost £
Basic Wages 52 wks 441.87 22,977.24 332.21 17,274.71
CITB levy (0.5% of payroll) 0.5% 114.89 86.37
Pension & Welfare Benefit 52 wks 12.86 668.72 12.86 668.72
Employer’s National Insurance contribution
(13.8% after the first £155 per week) 46.2 wks 2,195.39 1,408.44
Annual labour cost 25,956.24 19,438.24
Hourly base rates as defined 14.41 10.79
This is the prime cost of employment per person, which the employer has to meet even if there is no work for the employee to do.
