Jun
29
Does an hourly rate all inclusive mean the same as hourly rate plus expenses?
Filed Under Rental Car
Expenses paid means, food, rental car, lodging etc is looked after. Does all inclusive mean the same?
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One Response to “Does an hourly rate all inclusive mean the same as hourly rate plus expenses?”
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I’m assuming that this is part of an employment contract.
Usually these terms are defined more explicitly, since there can be a lot of confusion over how the wording is interpreted.
However, in many cases, an all-inclusive hourly rate means that food, rental car, lodging, etc. is factored into the cost. As a result these types of rates are usually higher.
An hourly rate plus expenses is usually lower than an all-inclusive rate, but actual expenses for food, rental car, lodging, etc. are paid for (usually up to a certain reasonable amount.)
For example, here are two equal compensation packages:
Hourly Rate plus expenses
$30/hr = hourly rate
$100 = 1 night hotel
$50 = food allowance
$390 = total amount charged for 8 hours worked.
All-inclusive Hourly Rate
$390 / 8 = $48.75/hr
$48.75/hr hourly rate x 8 hours will also give you the same amount of cash at the end.