Calculation of Staff Costs and Worker’s Productive Hours
7.—(1) For the purpose of regulation 5(a), staff costs shall be calculated by reference to the hourly rate at which a worker is employed by dividing the reasonably estimated annual cost of employing a worker by that worker’s productive hours during the same annual period.
(2) In paragraph (1), “productive hours” means those hours during which it is reasonably estimated that a worker will be engaged on a chargeable job or work of a similar kind within the claimant’s organisation, but does not include any periods of sickness, holiday, training, or other absence.