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Labor Costs

Accurately calculate project profitability by entering labor costs

Vedran avatar
Written by Vedran
Updated over a week ago

The "Labor Costs" feature allows you to define expenses related to your team members, which can be set individually for each workspace or project member. These costs are crucial for calculating team and project profitability and can be managed through the Insights feature in Toggl Track, which provides deeper analysis of data trends and financial metrics.

Adding labor costs

Labor Costs are directly associated with your team members and can be specified in two places:

  • For individual workspace members

  • For individual members of private projects

Defining labor cost for workspace members

Adding Labor Costs for individual workspace members is done on the Workspace Members page, here's how:

  1. Navigate to this page by clicking on Members in the main sidebar

  2. Define the Labor cost by inputting a number value under the "Cost" column

Defining labor cost for project members

  1. Open a Project from the Projects page

  2. Click on the “Team” tab

  3. Define Labor Cost under the 'Cost' column for individual project members as shown in the screenshot below

Set Billable and Labor Rates

Updating labor costs

Labor costs utilize a similar system as the Historical Billable Rates feature. When updating a labor rate you'll be presented with a window (screenshotted below) that will contain the following options:

  • Apply the rate change for all data. Selecting this option will apply the new rate on any time entry associated with the labor cost.

  • Apply the rate change starting from today. This is the default option. Use this to preserve the previous labor cost that was set.

  • Apply the rate change on a specific day (past or future). Use this to align changes with a specific date in the past or future. For example, for an employee that received (or will receive) a raise.

❗ If a specific date is selected, the new rate will be applicable to all Time Entries starting from 00:00 of that day, based on the admin's timezone. For more technical details related to rate changes, click here.

Labor costs window

Frequently Asked Questions

Who can enter labor costs?

Labor costs can only be defined and viewed by Administrators and Project Leads (role available only on the Premium plan).

How do I know which labor cost will be applied?

If a user has a labor rate entered on both the workspace level and the project level, the system will always default to using the most granular/specific rate, i.e. the labor rate entered on the project. We use the same logic for billable rates.


Can I assign Labor Costs to user groups?

No, labor costs can only be assigned to individual team members, similar to Billable rates.

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