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Labour Cost

**Labour Expense** includes salaries and wages, but it consists of other labour-related costs as well.
© International Culinary Studio

There are many terms associated with labour costs:

Labour Expense includes salaries and wages, but it consists of other labour-related costs as well.

Payroll refers to the gross pay received by an employee in exchange for their work.

A salaried employee receives the same income per week or month regardless of the number of hours worked.

A waged employee receives an hourly wage and is paid for the number of hours that they work.

Minimum staff is used to designate the least number of employees, or payroll monetary value, required to operate a facility or department within the facility.

Fixed Payroll refers to the monetary value an operation pays in salaries.

Variable Payroll consists of the monetary value paid to hourly employees. Sometimes employees have both a fixed and variable element to their pay.

© International Culinary Studio
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How to Manage Food Costing in the Catering and Restaurant Industry

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