Result
Idle time cost
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This calculation is for informational purposes only and does not replace advice from a qualified professional. Formulas and rates may not fit your exact situation — double-check the figures before making decisions.
How it is calculated
Idle time cost = employee hourly cost to the employer × idle hours. The company keeps paying the employee (and the taxes on that pay) regardless of whether they're working, so the same fully loaded hourly cost used for regular work underlies this calculation too.
Hourly cost here isn't the hourly salary — it's the employee's total cost to the employer (salary plus taxes, contributions and other charges), divided by standard working hours. This figure is usually already computed elsewhere — if not, use the employee hourly cost calculator.
This amount is the direct payroll cost of idle time, not indirect losses: lost revenue, missed deadlines, or downtime for equipment and other employees who depend on this person's work. Those losses need to be estimated separately for the full picture.