Labor burden in residential construction projects is the total amount of costs incurred by a contractor for providing wages, salary, bonuses, benefits (such as health insurance or retirement plans), payroll taxes, worker’s compensation premiums and any other related labor expenses. It can also include time spent on recruiting and training new staff members.

Labor burden is a significant factor in residential construction projects, as the cost of labor is often one of the largest expenses during a project. Knowing and budgeting for the labor burden can help contractors better manage their resources and ensure successful completion of any residential construction project.