Payroll and HR admin cost calculator: What does HR admin
already cost you every month?
Hours, headcount and an hourly cost are all this needs. It reports what the work costs today and stops there, rather than inventing a saving to sell you.
Your current HR administration cost
54.0 hours a month4,050.00
a month, in your own currency
A year
48,600.00
A year, per employee
405.00
A month, per employee
33.75
Admin hours per employee
0.5
Where the cost sits
- Payroll processingCollecting inputs, running the cycle, checking and releasing payslips.
- 1,800.0044% of the total
- Attendance and timesheetsChasing missing punches, correcting timesheets, reconciling overtime.
- 1,350.0033% of the total
- Leave administration and lettersApprovals, balance queries, salary certificates and other HR letters.
- 900.0022% of the total
- Overtime and absence errorsYour own estimate of what currently goes unnoticed each month.
- 0.000% of the total
How this was worked out
- Total HR admin hours a month
- 54.0 hours
- Hours × hourly cost (75.00)
- 4,050.00
- Plus your error estimate
- 0.00
- Monthly administrative cost
- 4,050.00
- Annual cost (× 12 months)
- 48,600.00
- Per employee a month (÷ 120)
- 33.75
What this tells you
The result tells you what administering HR currently costs you, and nothing more. We deliberately do not turn it into a saving or a payback period, because that would mean inventing an efficiency figure that no evidence on this page supports.
Use it as the denominator instead. When you price any HR system, set its annual licence against the 48,600.00 above, then ask the vendor which of the three activities they remove hours from, and by how much. Ask for that in hours, not percentages, and check the answer against your own team a quarter after go-live. The per-employee figure is the one to watch as you grow: if it does not fall as headcount rises, the process is not scaling.
12 months of the figure above is what this work costs you in a year, whatever software you run it on.
See the platformIndicative only. This calculator applies simple arithmetic, not labour law, to the figures you enter. There is no benchmark, no industry average and no assumption about DenwaysHR baked into the result, and no saving is claimed. The annual figure assumes the month you described is a typical one.
What this calculator counts, and what it leaves out
This calculator adds up what running HR and payroll by hand costs you today, from numbers you enter. It applies no labour law and no industry benchmark.
How the figure is built
- Hours spent each month on payroll, attendance and leave administration, added together
- Multiplied by the hourly cost of the person doing the work
- Plus your own estimate of what unnoticed overtime and absence errors cost each month
- The annual figure is the monthly figure × 12, which assumes the month you entered is a typical one
- Per-employee figures divide by the headcount you give
The calculator deliberately does not calculate a saving, a return or a payback period. That would mean inventing an efficiency percentage nothing here supports.
A worked example
80 employees. 16 hours on payroll, 20 on attendance and 8 on leave each month, at AED 60 an hour, and an estimated AED 1,000 a month in errors.
- Hours a month (16 + 20 + 8)
- 44 hours
- Cost of those hours (44 × 60)
- AED 2,640
- Plus estimated errors
- AED 1,000
- Monthly cost
- AED 3,640
- Annual cost (× 12)
- AED 43,680
The annual cost works out at AED 45.50 per employee each month.
Does this tell us how much an HRMS would save?
No. It reports what the manual work costs now and stops there. A saving figure would need an assumed efficiency gain, and we have not invented one.
What should we count as hourly cost?
The fully loaded cost of the person doing the work: salary plus benefits and overheads, divided by the hours they work. Any currency works, as long as you use the same one throughout.
Which month should we enter?
A typical one. A month with a year-end close or an audit will overstate the annual figure, because the calculator multiplies it by twelve.
Guides
Keep reading
Bring your whole workforce onto one platform.
See how DenwaysHR handles HR, attendance and leave across the GCC, and payroll with the WPS file in the UAE.
