> ## Documentation Index
> Fetch the complete documentation index at: https://docs.bold-factory.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Configure employee costs

> Review and update each employee's hourly cost to calculate planned and actual labor costs.

Configure each employee's hourly cost to include their recorded time in manufacturing and maintenance costs.

## Before you start

* You need access to **Costs > Cost objects > Employees** to view the amounts.
* You need permission to edit employees if you will change their hourly cost.
* The employee must exist in **People > Employees**.
* Calculate an hourly cost consistent with your company's costing approach.

One way to estimate it is to divide the annual labor cost you want to allocate by the annual effective working hours:

```text theme={null}
Hourly cost = annual labor cost / annual effective working hours
```

## Review hourly costs

**Path:** **Costs > Cost objects > Employees**

<Steps>
  <Step title="Find the employee">
    Search by code or name in **Costs by employee**.
  </Step>

  <Step title="Review the amount">
    View the **Cost/hour** column and compare it with your company's chosen approach.
  </Step>

  <Step title="Open the employee">
    In **Actions**, open their details to update the amount.
  </Step>

  <Step title="Update the cost">
    Enter the new value in **Hourly cost (€)** and click **Save**.
  </Step>
</Steps>

## Which calculations use this data

| Use | How hourly cost contributes |
| - | - |
| Manufacturing | Employee time records contribute actual labor cost. |
| Maintenance | Time recorded in a work order contributes labor cost to the work order. |
| Planning | If the person who will perform an operation is not yet known, Bold can display planned costs based on averages. |

<Warning>
  Use the same approach for all employees. Mixing gross salary, employer costs and internal rates produces unreliable comparisons.
</Warning>

## Check the result

After updating the cost, return to **Costs > Cost objects > Employees** and confirm the amount. To review its operational effect, view a manufacturing order or work order with time recorded by that employee.

## Related

* [Employees](/en/concepts/people/employees)
* [Theoretical cost vs actual cost](/en/concepts/costs/planned-versus-actual-cost)
* [Manufacturing order costs](/en/guides/costs/manufacturing-order-costs)
* [Work order costs](/en/guides/costs/work-order-costs)


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