Hospitality sector
Cost of employing hospitality staff UK (2025/26)
Hospitality is one of the UK's most labour-intensive sectors and one of the hardest hit by the April 2025 employer NI changes. With a large proportion of staff earning at or near the National Living Wage (£12.21/hour), the threshold cut from £9,100 to £5,000 has increased per-employee NI costs proportionally more than in higher-salary industries. At a typical front-of-house salary of £24,000, employer NI is approximately £2,850 per year — up from approximately £2,060 under 2024/25 rules. A kitchen porter or bar worker on NLW full-time (£23,810) generates employer NI of approximately £2,821 per year, pension of approximately £524, giving a total employer cost of approximately £27,155 before overheads.
UK scope: England, Scotland, Wales and Northern Ireland employer payroll planning for the 2025/26 tax year.
Sample total cost
£27,383
£2,282 per month on £24,000 salary
Employer NI
£2,850
15% above £5,000 secondary threshold (2025/26)
Pension + overheads
£533
Baseline employer pension plus configured overheads
Key assumptions — UK 2025/26
Employer NI: 15% on earnings above the £5,000 secondary threshold
Employer pension: minimum 3% on qualifying earnings £6,240–£50,270
Employment Allowance: up to £10,500 off the NI bill for eligible employers
Worked examples: £30k salary → £34,464/yr · £35k → £40,363/yr · £50k → £58,063/yr
What this page helps you check
- Typical front-of-house salary: £23,809–£27,000 (NLW to senior waiting staff).
- Chef de partie / junior chef: £26,000–£35,000. Head chef: £35,000–£55,000.
- Employer NI on £24,000 salary: approximately £2,850/year (15% above £5,000).
- Minimum employer pension on £24,000: approximately £531/year (3% of qualifying earnings).
- Hospitality managers: £28,000–£45,000 salary range, employer NI £3,450–£6,000/year.
- April 2025 NI threshold change particularly impacted lower-wage hospitality employers.
UK assumptions used
Employer NI
15% above £5,000 secondary threshold for 2025/26.
Auto-enrolment pension
Minimum employer contribution 3% on qualifying earnings.
Employment Allowance
Up to £10,500 relief in 2025/26 for eligible employers.
Frequently asked questions
How has the employer NI change affected hospitality businesses?
The April 2025 changes raised employer NI from 13.8% to 15% and cut the secondary threshold from £9,100 to £5,000. For hospitality staff on NLW (£23,810/year), this added approximately £790 per employee per year in NI costs. For a venue employing 10 staff at NLW, that represents around £7,900 per year in additional employer NI.
Do hospitality employers have to auto-enrol staff?
Yes, if workers are aged 22–66 and earn more than £10,000 per year. For full-time hospitality staff on NLW earning £23,810, auto-enrolment is mandatory and the minimum employer contribution is 3% of qualifying earnings — approximately £524/year. Workers below £10,000 can opt in, but the employer contribution obligation also applies.
Can hospitality businesses claim Employment Allowance?
Yes, if eligible. Most hospitality businesses with more than one employee qualify for Employment Allowance, which offsets up to £10,500 of annual employer NI. For a small restaurant or pub with six to eight staff earning near NLW, this can eliminate the entire annual NI bill — leaving only pension contributions and salary as the above-salary costs.
UK coverage only. Last reviewed: 04 April 2026. Estimates use 2025/26 assumptions and are for planning, not legal or tax advice.