Calculating the hourly rate for cleaning – the right way

Contents

1. Step 1: wage to annual gross
2. Step 2: payroll costs
3. Step 3: how many hours can you actually bill?
4. Step 4: materials, equipment, vehicle
5. Step 5: overheads – your own work isn’t free
6. Step 6: risk and profit
7. The same example with 2027 wages
8. Surcharges, part-time and marginal employment
9. Common mistakes
10. Explaining the price to clients
11. Checklist for every calculation
12. Frequently asked questions
13. Sources

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The principle: Hourly rate = (labour cost per billable hour + materials and equipment) × overhead surcharge × risk and profit surcharge. Divide by the hours you can actually bill, not the hours you pay. All values below are an example with stated assumptions – not a price recommendation and not real company figures. As of October 2026.

As a cleaning company in Vienna we see it again and again: offers on the internet at €15 to €20 per hour. With staff employed under the collective agreement, that simply doesn’t add up. Here is the calculation step by step, so you can plug in your own numbers.

Step 1: wage to annual gross

The starting point is the collective agreement for monument, façade and building cleaning. For ongoing contract cleaning in offices and businesses (wage group 6) the 2026 minimum is €12.37 per hour. From 1 January 2027 it is €12.73 in the new wage group 4, according to the agreement (please check the current text; all groups: Collective agreement for building cleaning in Austria explained). If you pay more – often necessary with staff shortages – use your actual wage.

The agreement counts 4.33 weeks per month. At 40 hours per week:

€12.37 × 40 h × 4.33 = €2,142.48 per month

Add the holiday and Christmas bonuses (one month’s pay each): €2,142.48 × 14 = €29,994.72 per year

Step 2: payroll costs

As an employer you also pay the employer’s share of social security, company pension provision (1.53 %), the FLAF contribution (3.7 %), the DB surcharge (about 0.3–0.4 % depending on the province) and municipal tax (3 %). Together that is roughly 29–30 % of gross pay. Your payroll provider will give you the exact rate – it depends on province and special rules (in the first years the NeuFöG exemption can reduce part of it).

Assumption 29.5 %: €29,994.72 × 1.295 = €38,843.16 staff cost per year

Step 3: how many hours can you actually bill?

You pay 52 weeks × 40 hours = 2,080 hours. You can bill far fewer:

Travel time within working hours counts as working time under the agreement and is paid – with many small sites per day this block can be much larger than 10 %. This is where profitability is decided.

€38,843.16 ÷ 1,541 h ≈ €25.21 labour cost per billable hour

Step 4: materials, equipment, vehicle

Cleaning agents, microfibre cloths, laundry, wear on vacuums and scrubber dryers, workwear, possibly vehicle costs. Track them per site or use a flat rate per hour: Cleaning equipment and supplies for starting out – the basics.

Assumption €1.50 per hour → €25.21 + €1.50 = €26.71

Step 5: overheads – your own work isn’t free

Office, phone, software, tax adviser, insurance, marketing, site management, quality checks, writing quotes, recruiting – and your own salary as managing director. All of this has to come in via your hourly rates.

Assumption 20 % overhead surcharge → €26.71 × 1.20 = €32.05

Your surcharge comes from your annual plan: planned overheads ÷ planned direct costs. A small business with a full-time owner-manager needs a higher percentage than a large one.

Step 6: risk and profit

Cancellations, rework, bad debts, wage increases mid-contract: without a profit margin you carry every risk yourself. Build a wage adjustment or indexation clause into long-term contracts: Writing a quote for contract cleaning – with service specification.

Assumption 8 % → €32.05 × 1.08 = ≈ €34.62 net per hour (plus 20 % VAT ≈ €41.54)

The same example with 2027 wages

Same assumptions, but with the 2027 minimum (€12.73):

Almost one euro per hour sounds small – at 1,500 billable hours per full-time employee that is about €1,400 per year.

Surcharges, part-time and marginal employment

Night work within normal hours between 21:00 and 6:00 carries a 50 % surcharge under the agreement, Sunday work 100 %, and part-time overtime 25 % unless compensated 1:1 within three months. With several sites on the same day, the agreement reimburses the cheapest public transport from the second trip; staff with up to 25 weekly hours generally get travel costs reimbursed unless you organise transport. Marginal employment (2026: up to €551.10 per month) has its own contribution rules – ask your payroll provider what an hour really costs. Working time rules: Working time, breaks and records in the cleaning industry.

Common mistakes

1. Dividing by paid instead of billable hours – the rate comes out 20 % or more too low.
2. Forgetting special payments – 14 instead of 12 monthly wages is one sixth more.
3. Not including your own salary – otherwise you work for free in the evenings.
4. No wage adjustment clause – every annual increase eats your profit.
5. Copying competitors’ prices – their price says nothing about your costs.

Explaining the price to clients

Business clients often compare only hourly or monthly prices. Put the service specification at the centre: what is cleaned how often, who checks quality, how quickly is cover arranged during sick leave, is staff registered under the collective agreement? A transparent quote makes it easier to hold a fair price.

From hourly rate to price per m²: Office cleaning prices per m² – how to price contract cleaning.

Checklist for every calculation

• Actual wage (at least the agreement) incl. special payments
• Payroll costs per your payroll provider
• Holidays, public holidays, sick leave deducted
• Travel and training time included
• Materials, equipment, vehicle
• Overheads incl. your own salary
• Risk and profit
• Surcharges for night, Sunday and holiday work
• Wage adjustment clause in the contract

Frequently asked questions

Sources

1. WKO – wage scale building cleaning 2026
2. WKO – collective agreement building cleaning 2026
3. everbill – payroll costs Austria 2026
4. WKO – New Business Promotion Act (payroll cost exemption)