Many hourly rates in the trades grew historically: “90 francs, because that’s what everyone charges.” Whether that rate actually covers your costs is something hardly anyone knows. Yet the calculation is manageable once you do it properly. Here’s the process, step by step. If you’d rather calculate directly: the free hourly rate calculator does exactly this calculation interactively.
Step 1: honestly estimate your billable hours
A year has, in theory, around 2’100 working hours (52 weeks x 42 hours, minus public holidays). From that, you lose: holidays, sick days, training, and above all unproductive time, meaning writing quotes, travel, setting up on site, admin. Realistically, a productive tradesperson keeps around 1’400 to 1’600 billable hours a year. For the owner of a small business, who also carries the whole admin load, it’s often noticeably less.
Even here, a close look pays off: every hour less in the office is one more billable hour. That’s exactly where MeisterOffice comes in, more on that below.
Step 2: gather the full costs
Your hourly rate needs to cover the entire cost of the business, not just wages:
- Staff costs: gross wages plus employer contributions (OASI/DI/LC, unemployment insurance, occupational pension, accident insurance, possibly sick pay insurance). As a rule of thumb, non-wage labour costs run around 15 to 20% on top of gross pay.
- Vehicles: leasing or depreciation, insurance, fuel, upkeep.
- Workshop and storage: rent, electricity, heating.
- Tools and machinery: purchase, replacement, repairs.
- Insurance and dues: business liability insurance, trade associations.
- Admin: accountant, software, phone, marketing.
- Your own wage: not a leftover, but a cost item like any other. If you don’t budget for yourself, you’re subsidising your customers.
Step 3: worked example for a two-person business
A painting business, owner plus one employee:
| Item | CHF per year |
|---|---|
| Owner’s wage (target) | 110’000 |
| Employee wage incl. on-costs | 95’000 |
| Vehicles (2 vans) | 18’000 |
| Workshop, storage, energy | 14’000 |
| Tools, machinery, consumables | 10’000 |
| Insurance, associations | 6’000 |
| Admin, accountant, software | 9’000 |
| Total costs | 262’000 |
Billable hours: owner 1’300, employee 1’550, together 2’850 hours.
Cost-covering rate: 262’000 / 2’850 = around CHF 92 per hour.
On top comes a margin for profit and risk, commonly 5 to 15%. At 10%, the business lands at around CHF 100 per hour. Anything below that eats into your reserves; unpaid invoices, a broken-down van or a quiet month aren’t cushioned yet.
For context: depending on the trade and region, hourly rates in the Swiss trades roughly range between CHF 85 and CHF 140. What matters isn’t the industry average, but whether your rate covers your own costs.
Step 4: make the rate stick
- Don’t apologise for the price. If you’ve derived your rate properly, you can calmly justify it: training, warranty, insurance, punctuality.
- Show materials and expenses separately, instead of hiding them in the hourly rate. That keeps the rate comparable and the quote transparent.
- Log every hour. The best rate is useless if hours get lost on the way to the invoice. With MeisterOffice’s time tracking, your people clock in and out on site, and every time-and-materials hour lands automatically on the invoice.
- Recalculate every year. Wages, insurance and materials get more expensive; your hourly rate needs to keep up.
Frequently asked questions
Should I charge private and business customers different rates? A single rate per type of work is common. You can differentiate through surcharges for emergencies, night work and weekend work, communicated transparently.
How do I handle competitors who are 20 francs cheaper? Recalculate, don’t just match them. Either your competitor has lower costs, or they’re working without a profit and will disappear from the market over time. Matching a price war means writing off your own wage target.
Does VAT belong in the hourly rate? No. The hourly rate is calculated net, and VAT (standard rate 8.1%) is shown separately on the invoice.