"Unit labour cost" and "wages" ?

Question

Hi

Can anyone tell me
what's the difference between "Unit labour cost" and
"wages"?

the concepts are similar?

Thanks a lot

I am confused now

Answer 1

The wage is the price that a firm pays for a unit of labor. The unit labor cost is the firm's expendiure on labor to produce one unit of a good. For example, if the wage is $30/hour and it takes two man hours to produce a unit of the good, then the unit labor cost is 2*30=$60/unit.

Answer 2

Wages (gross wages) are the money paid to a worker before deduction of PAYE, employee's National Insurance and anything else that the employer deducts such as payments to a pension fund, Trade Union dues, professional subscriptions etc.
Unit labour cost is what it costs the employer to hire a worker. It includes the worker's gross wages plus employer's National Insurance, the cost of employing someone else to do the worker's job while the worker is on full wages but absent on holiday, maternity leave, sickness etc., also incidental labour-related costs such as insurance against accidents at work, provision of employees' car-parking and so on.

Answer 3

Wages are what are paid to the employee. Unit labor cost is the cost to employer per item of production. Labor cost to the employer is wages, benefits, workers comp insurance, overhead.

Answer 4

wages is the money the worker gets (at least before taxes are deducted)

labor costs is what the business pays to hire the worker. Besides wages, this includes taxes & social security paid by employer, benefits that they provide to worker, training, work clothes that the employer provides, food and housing for workers, etc.

Answer 5

Do not remain confused. You have asked a very pertinent question that arises from losse use of terms by applied economists and accountants/ media.
Wages may refer to the total wages paid to the workers and employees. It may or may not include certain statutory pension/ medical expenses incurred by a company in the interest of or for the labor/ employees/ workers but not directly paid as wages to labor.
Wage rate is the amount of money paid by an employer to an employee (average for specific category of labor) per day or per hour or per piece (a specific number of pieces of output) produced or per month or per year.
Average Wage Rate, when it includes all payments to lobor directly or indirectly and all expenses incurred on healthcare, pension contributions,and other benefits, per day/ per month/ per houris what is called the cost of an unit of labor or often referred to as unit labor costs (total cost,incurred to employ a lobor per year/ day/ week/ hour).
Unfortunately, the term unit cost of production is used as the cost incurred to produce one unit of output. Many times, people say unit cost of production consists of unit cost of labor, unit cost rawmaterials, unit cost of power to decompose the unit cost of production. In such context, unit cost of labor may mean the cost incurred on labour used to produce one unit of output.
One needs to see the context in which these terms are used and understand. Without appreciating the context, confusion is likely.