(i) Direct Labour. The operator or operators which actually process the raw materials either on machines or manually, form the direct labour.
(ii) Indirect Labour. All the staff excepting administrative and sales office staff, which help in running the plant come under the category of indirect labour. Indirect labour includes : Foreman, supervisors, maintenance staff, stores personnel, time office staff, drawing office staff, etc. Indirect labour forms a part of overheads.