Service rate per hour as given by industry = R385 to R748. (Average R566.50 per hour across all provinces).

* these rates can be subject to volume and would not generally apply when doing tenders etc.

1. Service charges vary and dependant on costs per province which include: Labour rate (salaries), insurance, medical aid and pension, marketing and vehicle costs.
   
2. This service fee excludes a call out fee (based on travel costs) that can be charged.
   
3. Service charges exclude material costs supplied by plumber.
   

Rate guidelines are based on the following:

1. Business administrative costs which include rent, lights & water, telephones, equipment, stationery and furniture
   
2. Marketing and advertising costs
   
3. Insurance costs which include general office, vehicle, life and disability, public liability, product liability, defective workmanship, tools and equipment
   
4. Tools and uniform
   
5. Salaries which include employment of qualified plumbers
   
6. Medical aid and pension
   
7. Comply with plumbing standards and local bylaws
   
8. Comply with Health and Safety legislation
   

How a plumbing company should calculate their service rate:

• Step one: Calculate direct and indirect costs of Plumbing business per year
  
• Step two: Divide cost of business by the amount of months available to work (average 10.3 months per year)
  
• Step Three: Add required profit
  
• Step four: Divide annual cost (including profit )by working days per month (average 20 working days p/m) = Total labour per day
  
• Step Five: Divide total labour per day by average jobs that can be done in one day = Hourly service charge
  

Some plumbing companies will include there travel costs into this service rate or they may charge separately for travel.

Disclaimer:

1. The Institute of Plumbing South Africa (IOPSA) supports a free market within the boundaries of the South African Legislation. IOPSA does not get involved in how a plumber costs their business with respect to service fee structure, call out charges, labour charges or material costs.
   
2. Insurance plumbing rates are not included in these calculations and based on the insurance industry criteria.
3. NOTE: Check the following with your local plumbing company before acquiring their services:
1. Ensure your plumbing company can give you a breakdown of how they calculate their service rate
2. Confirm your plumbing company complies with current legislation and local bylaws.
3. Confirm your plumbing company employs qualified plumbers and they are registered with Plumbing Industries Registration Board (PIRB) (A consumer is breaking the law if a un-qualified plumber works, installs or maintains plumbing on a property owned by them)
4. Confirm with your plumber if call out charge is included in service cost or charged separately.
5. Ask your plumber to issue you with a Plumbing Certificate of Compliance (PIRB).
6. Ensure your plumbing company quotes before you give them the go ahead.
7. As you are contracting a plumbing company, ensure that they are a legal entity, financially stable and can deliver the service.