Office Cleaning Outsourcing vs Direct Hire Cost Calculator

Compare directly hired office-cleaning staff with an actual Korean vendor quote over the same area, worker count, visits, service hours, and horizon. The dedicated bilingual calculator reuses one pure KRW function for paid hours, wage, company-specific employer burden, an optional retirement-benefit planning reserve, leave and absence cover, supplies, equipment, recruiting, training, health management and internal oversight, plus vendor setup, monthly base, service-hour fees, supplies add-ons, annual extras and retained coordination. It solves total, monthly, per-service-hour and per-pyeong cost, three rate thresholds, horizon sensitivity and cumulative crossover. The guide preserves the 2026 KRW 10,320 minimum-wage notice, Minimum Wage Act Article 6, Labor Standards Act Articles 18, 55 and 60 and Enforcement Decree Article 30, Employee Retirement Benefit Security Act Articles 4 and 8, Occupational Safety and Health Act Articles 63 and 64, and Worker Dispatch Act Article 2 as checked on July 31, 2026, without inventing a market-average cleaning rate, statutory combined burden, paid-hour entitlement, vendor compliance or legal classification.

Replace the example with payroll records and a like-for-like cleaning quote

Starting amounts and the 12% burden are illustrative, not market averages or a statutory combined rate. Align area, zones, worker count, visits, service hours, supplies, backup coverage, and VAT treatment before comparing.

Shared office and service scope

Normalize both options to the same area, worker count, visit schedule, service hours, and internal time value.

months

Whole months from 1 to 120

pyeong

Used only for monthly cost per pyeong

workers

Average workers applied to both options

days/week

Whole days from 1 to 7

hours

Actual cleaning service time

KRW/hour

Fully loaded cost for attendance, inspection, complaints, and vendor coordination

Directly hired cleaning staff

Enter wage, employer burden, planning reserve, backup coverage, supplies, equipment, and internal management time.

KRW/hour

Compared with the 2026 minimum wage of KRW 10,320

hours/week

Enter 0 to 8 after checking contract, four-week average, and attendance

%

Use company-specific contributions and benefits

KRW
KRW
KRW

Equipment, PPE, recruiting, and onboarding

KRW

Safety training, health management, and records

hours

Attendance, payroll, quality, and backup coordination

Office-cleaning vendor quote

Include setup, monthly base, service-hour fees, supplies and add-ons, plus retained inspection and coordination time.

KRW

Access setup, handover, and initial deep clean

KRW

For a flat monthly quote, enter the full monthly amount here

KRW/hour

Use zero for a fully flat monthly quote

KRW

Use zero when supplies are included

KRW

Deep cleans, equipment, training, or insurance documents

hours

Inspection, access, complaints, and vendor coordination

12-month total economic cost comparison

Direct hire is cheaper with these inputs

Direct hire KRW 3,158,731 saved

Direct-hire total

KRW 18,255,555

Outsourced total

KRW 21,414,286

Monthly saving

KRW 263,228

Annualized saving

KRW 3,158,731

Directly hired cleaning staff

Lower now

KRW 18,255,555

Monthly KRW 1,521,296Per service hour KRW 23,340Per pyeong/month KRW 19,016
Equipment and recruiting
KRW 900,000
Base wage cost
KRW 9,686,057
Employer burden
KRW 1,162,327
Retirement-benefit planning reserve
KRW 807,171
Leave and absence cover
KRW 1,200,000
Cleaning supplies
KRW 1,800,000
Training and health management
KRW 300,000
Internal management time
KRW 2,400,000
Total internal management time
48 hours
Monthly paid hours
78.21 hours

Office-cleaning outsourcing

Option

KRW 21,414,286

Monthly KRW 1,784,524Per service hour KRW 27,379Per pyeong/month KRW 22,307
Vendor setup cost
KRW 300,000
Monthly base fees
KRW 6,000,000
Service-hour fees
KRW 12,514,286
Supplies add-on
KRW 1,200,000
Annual contract add-ons
KRW 200,000
Retained internal time
KRW 1,200,000
Total retained internal time
24 hours
Monthly service hours
65.18 hours

Service-hour and statutory boundary checks

Monthly service hours are actual cleaning time; monthly paid hours add the paid weekly-holiday hours you entered. These are review signals, not legal conclusions.

Weekly service per worker

15 hours

Monthly service

65.18 hours

Direct-hire paid time

78.21 hours

2026 minimum-wage check

Entered wage is at or above the benchmark

The schedule is at or above the 15-hour weekly threshold. Check the four-week average under Labor Standards Act Article 18, attendance under Enforcement Decree Article 30, the actual contract, and any exception before entering weekly-holiday hours or leave cover.

Key break-even thresholds

Hold every other input constant and change only the monthly vendor base fee, vendor service-hour fee, or direct-hire wage until total cost matches.

Monthly outsourced base fee

KRW 236,772/month

Holding other inputs constant, outsourcing is cheaper when the actual vendor rate is below this threshold.

Outsourced fee per service hour

KRW 11,961/hour

Holding other inputs constant, outsourcing is cheaper when the actual vendor rate is below this threshold.

Direct-hire hourly wage

KRW 13,117/hour

Holding other inputs constant, direct hire is cheaper when the actual hourly wage is below this threshold.

Comparison-horizon sensitivity

Keep the office scope, schedule, wage, and vendor rates fixed while changing only the horizon to see setup-cost dilution and recurring-cost accumulation.

Direct-hire and outsourced office-cleaning total cost by comparison horizon
HorizonDirect hireOutsourcingLower-cost optionDifference
6 monthsKRW 9,577,778KRW 10,857,143Direct hireKRW 1,279,365
12 monthsKRW 18,255,555KRW 21,414,286Direct hireKRW 3,158,731
24 monthsKRW 35,611,111KRW 42,528,571Direct hireKRW 6,917,460
36 monthsKRW 52,966,666KRW 63,642,857Direct hireKRW 10,676,191

Cumulative economic-cost crossover

About 1.9 months is where the advantage changes from outsourcing to direct hire.

This is an economic crossover with annual costs spread over 12 months, not an invoice, payday, or cash-flow date.

Legal and contract checks before deciding

  • Check the KRW 10,320 hourly minimum under the 2026 notice, wage inclusion rules, and principal-contractor boundaries under Minimum Wage Act Article 6.
  • Check the four-week 15-hour threshold, attendance on contractual workdays, weekly holidays, and annual leave under Korean Labor Standards Act Articles 18, 55, and 60 and Enforcement Decree Article 30.
  • Check the one-year service and 15-hour boundaries and average-wage settlement under Employee Retirement Benefit Security Act Articles 4 and 8. The one-twelfth reserve is not statutory severance.
  • For outsourcing, review principal-contractor safety and health measures, coordination, inspection, training support, and work checks under Occupational Safety and Health Act Articles 63 and 64.
  • Have a Korean labor specialist review whether direct client control over vendor workers crosses the Worker Dispatch Act Article 2 boundary.
  • Align area, zones, visits, hours, restrooms, pantry, glass, carpet, deep cleaning, waste, supplies, equipment, backup staff, inspection, and VAT treatment in writing.

Korea-based 2026 operating guidance · primary sources verified 2026-07-31

Related calculators

What should an office-cleaning make-or-buy comparison include?

Comparing a vendor’s monthly quote with one cleaner’s hourly wage leaves out much of the economic cost.
Direct hire can require paid weekly-holiday hours, employer contributions and benefits, a retirement-benefit planning reserve, paid-leave or absence cover, supplies, equipment, recruiting, safety work, and internal payroll and quality-management time.
Outsourcing can require a survey and handover fee, a monthly minimum, service-hour charges, separate supplies, periodic deep-clean fees, and internal time for access, inspection, complaints, and vendor coordination.

This calculator applies one office area, worker count, visit schedule, and service-hour scope to both options, then converts every input into KRW over the same comparison horizon.
It reports total cost, monthly equivalent cost, cost per actual service hour, monthly cost per pyeong, three break-even rates, horizon sensitivity, and any cumulative cost crossover.

Korea-based 2026 planning boundary

This English page models a Korean employment and cleaning-service decision in KRW.
It uses the 2026 Korean minimum wage as a warning benchmark and preserves Korean labor, retirement, contractor-safety, and worker-dispatch review points.
It does not decide employee status, social-insurance coverage, statutory weekly-holiday pay, annual leave, severance, contractor duties, VAT recovery, or whether an arrangement is lawful.

  • Founders and office managers choosing a first cleaning model
  • HR and general-affairs teams comparing replacement hiring with a vendor transition
  • Finance teams testing whether a monthly or hourly vendor quote is competitive
  • Companies changing office size, cleaning frequency, or access hours
  • Buyers preparing a like-for-like scope and rate negotiation

Normalize the service scope first

The same nominal floor area can require very different labor when the office has more restrooms, pantry use, glass partitions, carpet, waste separation, meeting-room turnover, security procedures, or restricted access hours.
A vendor quote for five three-hour visits each week cannot be compared with a direct-hire plan for three two-hour shifts without separating scope from operating model.

Areas and tasks

Align exclusive and shared areas, restrooms, pantry, glass, carpet, storage, waste, and scheduled deep cleaning.

Schedule and staffing

Align worker count, visits per week, hours per visit, before-hours, night or weekend work, and break treatment.

Supplies and equipment

State who provides chemicals, waste bags, paper goods, vacuums, floor machines, uniforms, and protective equipment.

Backup and quality

Align absence cover, supervisor visits, inspection criteria, complaint rework, access cards, keys, and reporting.

Use one VAT basis

Decide whether the comparison uses recoverable-VAT-exclusive cost or actual cash paid.
The calculator cannot know the company’s tax status or input-tax recovery, so it does not add or remove VAT automatically.

Collect evidence for every input

Evidence needed for a direct-hire and outsourced office-cleaning comparison
Cost areaInputsBest evidence
Shared scopeArea, workers, visits, hours per visitFloor plan, task schedule, recent work logs, written quote
Direct wageHourly wage and paid weekly-holiday hoursEmployment contract, attendance, payroll, 2026 wage notice
Direct non-wage costEmployer burden, reserve, backup, supplies, training, management timeContribution notices, ledger, purchase records, four-week time log
Vendor priceSetup, monthly base, hourly fee, supplies, annual add-onsWritten price schedule tied to a service scope and SLA
Retained workDirect management and outsourced coordination hoursHR, payroll, access, inspection, and complaint-handling logs

The initial 12% employer-burden rate is an illustrative assumption, not an official combined Korean contribution rate.
Replace it with company-specific social-insurance, workers’ compensation, benefit, and other wage-linked cost from actual records.
If that rate already includes a retirement-benefit accrual, turn off the separate reserve to avoid double counting.

Service hours and paid hours are different

Time conversion

Average weeks per month = 365 / 7 / 12 = about 4.3452

Monthly service hours = workers x days per week x hours per visit x average weeks

Monthly paid hours = workers x (weekly service hours + entered paid weekly-holiday hours) x average weeks

In the default example, one worker serves five days for three hours per visit, producing 15 weekly service hours and about 65.18 monthly service hours.
The user enters three paid weekly-holiday hours, so monthly direct-hire paid time becomes about 78.21 hours.
The calculator does not infer that the three hours are legally due.
Confirm the four-week weekly-hours test under Korean Labor Standards Act Article 18, attendance on contractual workdays under Enforcement Decree Article 30, the actual contract, and any exception before entering paid hours.

How the two total-cost models work

Direct-hire cost

Paid hours multiplied by hourly wage create base wage cost.
The model adds wage-linked employer burden, the optional one-twelfth retirement-benefit planning reserve, paid-leave and absence cover, supplies, equipment and recruiting, annual training and health-management cost, and internal management time.

Outsourced cost

The model adds setup, monthly base fees, actual service hours multiplied by the vendor hourly fee, supplies add-ons, annual contract extras, and retained internal coordination time.
For a fully flat monthly quote, put the full monthly amount in the base field and set the hourly vendor fee to zero.

Shared output formulas

  • Total difference equals direct-hire cost minus outsourced cost
  • Monthly saving equals the absolute total difference divided by comparison months
  • Annualized saving equals the absolute difference multiplied by 12 and divided by comparison months
  • Cost per service hour equals total cost divided by total actual service hours
  • Monthly cost per pyeong equals total cost divided by office area and months

Understand the three break-even rates

Monthly outsourced base fee

The calculator removes the current monthly base-fee total from outsourced cost, then allocates the remaining room below direct-hire cost across the comparison months.
With every other input fixed, outsourcing is cheaper below a valid non-negative threshold.

Outsourced service-hour fee

The model removes current service-hour charges and divides the remaining room below direct-hire cost by all service hours in the horizon.
This rate is most useful for a quote that combines a fixed monthly minimum with hourly usage.

Direct-hire hourly wage

Wage, employer burden, and the optional reserve move together when the hourly wage changes.
The resulting threshold is mathematical, not a lawful wage recommendation.
If it falls below KRW 10,320, the business must not use that lower number as a 2026 hiring rate; it should revisit vendor price, non-wage cost, or service design.

Worked example: an 80-pyeong office

This is a transparent test vector, not a Korean market average.
It uses one worker, five weekly visits, three hours per visit, a direct wage of KRW 10,320, three entered paid weekly-holiday hours, and a 12% illustrative employer burden.
The vendor side uses a KRW 500,000 monthly base fee, KRW 16,000 per service hour, and KRW 100,000 monthly supplies add-on.

Worked 80-pyeong office example with direct-hire and outsourced cost
MetricResultInterpretation
Monthly service hours65.18 hoursActual cleaning time shared by both options
Direct-hire monthly paid hours78.21 hoursIncludes the entered weekly-holiday hours
Direct-hire 12-month totalKRW 18,255,555Wage, burden, reserve, cover, supplies, and management included
Outsourced 12-month totalKRW 21,414,286Setup, base, hours, supplies, extras, and retained time included
Direct-hire savingKRW 3,158,731Valid only for these illustrative inputs
Monthly vendor base break-evenAbout KRW 236,772Vendor base must be lower when other vendor cost stays fixed
Vendor hourly break-evenAbout KRW 11,961Threshold under the current base and add-ons
Direct wage break-evenAbout KRW 13,117Direct hire is cheaper below this mathematical threshold
Cumulative crossoverAbout 1.92 monthsInitial outsourcing advantage changes to direct-hire advantage

The example does not prove that direct hire is generally cheaper.
A flat vendor quote, guaranteed backup, included supplies, night work, different management time, security requirements, or a different VAT basis can change both the result and crossover.

Step-by-step workflow

  1. Set one horizon and one service scope.
    Enter the same area, worker count, visits, and hours, then reconcile zones and tasks in both plans.
  2. Verify direct-hire paid time.
    Enter the contractual wage and paid weekly-holiday hours supported by the contract, four-week average, attendance, and actual payroll rule.
  3. Add hidden direct cost.
    Use actual employer notices, backup cost, supplies, equipment, training, and a recent internal management time log.
  4. Split the vendor quote by billing method.
    Put a fully flat quote in the monthly base and set hourly fee to zero, or separate fixed and variable amounts when both apply.
  5. Compare unit and total cost.
    Review service-hour cost, monthly cost per pyeong, and retained internal time alongside the headline difference.
  6. Use thresholds and horizons in negotiation.
    Identify which quoted rate exceeds its break-even point and whether a longer contract changes the preferred option.

Official Korean rule checks for 2026

Minimum wage: KRW 10,320 per hour

Ministry of Employment and Labor Notice No. 2025-47 set the 2026 hourly minimum wage at KRW 10,320 from January 1, 2026.
Minimum Wage Act Article 6 requires at least the applicable minimum and addresses principal responsibility where a contracting party sets or reduces labor cost below that minimum.
The calculator warns about the entered direct wage but does not decide included wage, probation, occupation classification, or an exemption.

The 15-hour boundary, weekly holiday, and annual leave

Korean Labor Standards Act Article 18 excludes Articles 55 and 60 when contractual hours average below 15 per week over four weeks.
Article 55 addresses a paid weekly holiday, Article 60 addresses annual paid leave, and Enforcement Decree Article 30 ties the weekly holiday to attendance on contractual workdays.
The calculator provides a schedule flag but leaves paid weekly-holiday hours and absence cover editable because schedule alone is not a legal determination.

Retirement benefit is not simply one-twelfth of wage

Employee Retirement Benefit Security Act Article 4, effective July 1, 2026 in the verified version, provides exceptions for less than one year of continuous service and for an average below 15 weekly contractual hours.
Article 8 requires a system able to pay at least 30 days of average wage per year of continuous service.
The optional one-twelfth amount in this calculator is only a planning reserve and is not the employee’s statutory severance calculation.

Contractor safety and direct-control boundary

Occupational Safety and Health Act Article 63 requires relevant principal-contractor safety and health measures when contractor workers work at the principal’s workplace, while Article 64 addresses coordination, inspections, training support, work checks, and related prevention measures.
Worker Dispatch Act Article 2 defines worker dispatch around a worker remaining employed by the dispatching employer while taking direction and orders from the user employer.
A written service label does not settle the actual operating structure, so obtain Korean safety and labor review before deciding.

Decision scenarios beyond price

Small office with short shifts

Recruiting, equipment, and payroll administration can create a high unit cost when actual service hours are low.
A vendor minimum can create the opposite problem, so test bundled sites, fewer visits, or a different fixed-variable price mix.

Security-sensitive office

Identity checks, access rights, keys, confidentiality, incident reporting, and control of replacement workers can matter more than a small cost gap.
Price those requirements where possible and use a separate non-price scorecard.

Planned office expansion

Run current and future office scopes separately.
A larger area can change worker count, supervision, equipment, and a vendor price tier rather than scaling every cost proportionally.

Transition from an existing employee

An economic result does not decide dismissal, contract termination, transfer, or workforce-restructuring compliance.
Add handover and service-gap cost, then review employment procedure separately with a qualified Korean professional.

Limitations and cautions

  • Default vendor rates and the 12% burden are illustrative, not Korean market averages
  • The 4.3452 average weeks factor does not reproduce each month’s calendar, public holidays, or payroll
  • The model does not calculate employee-specific contributions, premium pay, annual leave, or severance
  • Cleaning quality, absence, rework, theft, damage, injury, and SLA loss are not probability-weighted
  • The model does not verify vendor registration, insurance, subcontracting, or labor compliance
  • VAT, income-tax effects, price escalation, present value, and financing cost are excluded
  • A lower-cost option is not automatically better for security, quality, control, or working conditions

Frequently asked questions

How do I enter a fully flat monthly vendor quote?

Enter the entire comparable monthly amount as the monthly base fee and set the service-hour fee to zero. Put separately billed supplies or deep cleans in their own fields to avoid double counting.

Should I automatically enter three paid weekly-holiday hours at 15 weekly service hours?

No. Confirm the four-week average of contractual hours, attendance on contractual workdays, the employment contract, and any exception before entering the paid hours.

Is the default 12% the official 2026 Korean social-insurance rate?

No. It is an illustrative model input. Build a company-specific rate from actual employer contributions, workers compensation, benefits, and other wage-linked cost.

Does the retirement-reserve switch calculate statutory severance?

No. It adds one-twelfth of modeled wage as a budget reserve. Actual entitlement and payment depend on continuous service, weekly contractual hours, and average wage.

Can I hire at the break-even wage if it falls below KRW 10,320?

No. A break-even wage is only a mathematical threshold. Comply with the 2026 minimum wage and its inclusion rules, then change vendor price, service scope, or other cost assumptions.

Can I sign immediately when outsourcing is cheaper?

Review scope, backup coverage, quality checks, security, safety, subcontracting, liability, insurance, escalation, VAT, renewal, and termination. Also review the actual direction-and-control structure.

Primary sources and update date

Primary Korean sources were checked through the National Law Information Center OPEN API and official Ministry and Minimum Wage Commission material on July 31, 2026.
The Occupational Safety and Health Act check used the current July 7, 2026 effective version to avoid confusing it with future versions already present in the statute history.

  • 2026 Minimum Wage Notice, Ministry Notice No. 2025-47, effective January 1, 2026
  • Minimum Wage Act Article 6, MST 218303
  • Korean Labor Standards Act Articles 18, 55, and 60, MST 265959
  • Labor Standards Act Enforcement Decree Article 30, MST 270551
  • Employee Retirement Benefit Security Act Articles 4 and 8, MST 284455, effective July 1, 2026
  • Occupational Safety and Health Act Articles 63 and 64, MST 287805, current effective version July 7, 2026
  • Worker Dispatch Act Article 2, MST 286257, effective May 26, 2026

Recheck the next minimum-wage notice, amended statutes, company contribution notices, and the final vendor contract before a real decision.
This calculator supports budgeting and quote comparison; it does not replace Korean legal, labor, tax, accounting, or safety advice.

Replace the illustration with real payroll and written quotes

Gather at least several recent weeks of cleaning time, payroll, supplies, and internal management logs, then request vendor quotes against the same task schedule.
Total cost, unit cost, break-even rates, and horizon crossover provide a stronger negotiation record than one headline monthly price.

When the costs are close, give greater weight to quality, security, backup coverage, working conditions, safety, and contract control.