Plenty of tradies put an apprentice or labourer on site and quietly lose money on them — either by not charging for their time at all, or by guessing a rate that does not cover what they actually cost. Here is how to work out a rate that is fair to the customer and still profitable for you.
Why you charge them out at all
An apprentice is not free labour just because they are learning. Every hour they are on the tools they are costing you:
- Wages — their award rate for every hour, productive or not.
- Super & on-costs — superannuation, workers comp, insurance, leave.
- Tools & vehicle — gear, consumables, and a spot in the ute.
- Your time — the hours you spend directing and checking their work instead of doing your own.
If you do not charge for their time, all of that comes straight out of your pocket. Charging them out is not greedy — it is the only way having help on site actually helps.
Start with their true cost
Same principle as working out your own rate: figure out what they truly cost you per billablehour, not just their wage. Add wage + super + insurance + tools, then divide by the hours they are actually billable (not the ones spent travelling, cleaning up or learning). That all-in number is your floor — charge below it and you lose money on every hour.
Free True Hourly Rate Calculator
Punch in wages, on-costs and billable hours — for you or a team member — and it works out the real hourly cost, so you know exactly where your charge-out rate needs to start.
Open the free toolSetting the charge-out rate
Once you know their true cost, add a margin the same way you do for your own labour. A handy shortcut most tradies use is a percentage of their own rate:
- First-year apprentice — ~50% of your rate. Needs constant supervision, slower, more rework.
- Second/third-year — ~55–65%. Can run defined tasks with a check-in.
- Fourth-year / labourer who works solo — ~65–75%. Productive with minimal hand-holding.
Sense-check the result against their true cost — the percentage is just a starting point, the cost floor is the rule.
How to show it on a quote
You do not have to itemise apprentice hours separately — most tradies fold all labour into one figure or a fixed price. What matters is that the hours are in there at a rate that pays. If you do split labour out, a lower apprentice line can actually make your quote look sharper while still turning a profit.
Frequently asked questions
A common approach is to charge an apprentice out at 50–70% of your own charge-out rate, depending on their year and how much they can work unsupervised. A first-year needs constant direction so sits at the lower end; a third or fourth-year who can run tasks solo sits higher. The key is that their charge-out rate must comfortably exceed what they cost you per hour.
Yes. Even while they are learning, an apprentice costs you wages, super, insurance, tools and your time supervising them. If you do not charge them out, every hour they are on site is money out of your pocket. Charge them out at a rate that covers their true cost plus a margin.
Start with their true hourly cost to you (wage + super + insurance + non-billable time), then add a margin the same way you do for yourself. A labourer who costs you $35/hr all-in might be charged out at $55–$70/hr depending on your market.
No — and you should not charge full rate for a set of hands that needs supervision. Charging an apprentice out at a sensible discount to your own rate is fair, competitive, and still profitable. It also lets you take on more work by having help on site.
Know your real numbers on every job
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