If you wish to enable labor cost calculation for employees, go to Settings > Work and projects > Labor cost to activate the feature.
Labor cost is calculated automatically based on completed activities and taken into account, for example, when calculating project costs, etc. The rate are also displayed under the 'Past activities' log in the client and project views.
Just click on the name of each team member to set up or modify their labor cost.
In addition to setting up a personal labor cost for each of your team members, you can to set up a default labor cost. This is important in order to calculate costs (for example, when comparing project budgeted cost to actual) for the activities done by users with no individual labor cost set up.