Definition
Labor cost = wages + payroll taxes + benefits + reimbursable expenses (mileage, per diem) attributable to workforce.
Payroll · [Mileage reimbursement](/glossary/mileage-reimbursement/)
7 min · 2026-07-02
Labor Cost: Definition & Field Workforce Calculation
Labor cost is total employer spend on wages, benefits, taxes, and reimbursements — field programs add mileage and per diem that finance must include in loaded cost models.
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