Setting Your Labour Rate in NZ
The right charge-out rate isn't just your wages — it must recover all your costs and leave a profit.
The Cost-Plus Formula
Charge rate = (Actual wage cost × overhead factor) ÷ billable hours ratio
For a tradesperson earning $50/hr actual cost, with 25% overhead and 75% billable time:
($50 × 1.25) ÷ 0.75 = $83/hr minimum charge-out
Overhead Items Often Missed
- Vehicle (loan, insurance, WoF, fuel, registration)
- Tools and equipment
- Software (job management, accounting, invoicing)
- Mobile phone
- ACC employer levy
- Public liability and business insurance
- Downtime (rain days, travel, quoting, admin)
- KiwiSaver contributions
NZ Trades Labour Benchmarks (2025)
| Trade | Typical charge-out rate |
|---|---|
| Electrician | $95–$130/hr |
| Plumber | $90–$130/hr |
| Builder (LBP) | $80–$120/hr |
| Tiler | $80–$110/hr |
| Painter | $55–$85/hr |
| Landscaper | $65–$95/hr |
Use our Hourly Rate Calculator to calculate your minimum viable rate.