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7. (1) For the purpose of regulation 5(a), staff costs will 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.
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