7 Calculation of Staff Costs and Productive Hours
1 For the purpose of regulation 5(a), staff costs shall be calculated by reference to the hourly rate at which a person is employed by dividing the reasonably estimated annual cost of employing a person by that person’s productive hours during the same annual period.
2 In paragraph (1) above, “productive hours” means those hours during which it is reasonably estimated that a person 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.