Logistics & transport
Cost of employing logistics staff UK (2026/27)
The UK logistics sector employs over 2.5 million people, ranging from warehouse operatives on National Living Wage to HGV Class 1 drivers commanding premium rates following post-Brexit driver shortages. At a warehouse operative salary of £25,000, employer NI adds £3,000 and minimum pension adds £563, bringing total annual employer cost to approximately £28,563. Agency workers add further cost — agency margins of 15–30% are common. Shift premiums and weekend working allowances add 10–25% to base salary cost in 24/7 operations.
UK scope: England, Scotland, Wales and Northern Ireland employer payroll planning for the 2026/27 tax year.
Sample total cost
£34,463
£2,872 per month on £30,000 salary
Employer NI
£3,750
15% above £5,000 secondary threshold (2026/27)
Pension + overheads
£713
Baseline employer pension plus configured overheads
Key assumptions — UK 2026/27
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
- Warehouse operative (NLW): ~£25,350/yr. Employer NI: ~£3,053. Total: ~£29,017.
- Forklift operator / FLT driver: £26,000–£32,000.
- HGV Class 2 driver: £28,000–£35,000. Employer NI: £3,450–£4,500.
- HGV Class 1 (artic): £32,000–£45,000. Shortage role — wage growth continues.
- Logistics manager / transport planner: £35,000–£55,000.
- Night shift / weekend premiums typically add 15–25% to base salary cost.
UK assumptions used
Employer NI
15% above £5,000 secondary threshold for 2026/27.
Auto-enrolment pension
Minimum employer contribution 3% on qualifying earnings.
Employment Allowance
Up to £10,500 relief in 2026/27 for eligible employers.
Frequently asked questions
How much does it cost to hire an HGV driver in the UK?
A Class 1 HGV driver earning £38,000 costs approximately £43,800 per year as an employer — salary plus employer NI of £4,950 plus minimum pension of £963. Night driving allowances, tachograph compliance time, and agency margin (if used) can push total effective cost significantly higher. The driver shortage has kept rates elevated: many experienced Class 1 drivers now command £40,000–£45,000+ in competitive markets.
Is using an agency worker cheaper than a direct hire for logistics roles?
Agency workers avoid employer NI and pension obligations on the payroll, but agency margins of 15–30% typically make them more expensive per hour than equivalent PAYE employees. For short-term or seasonal cover, agencies offer flexibility worth the premium. For consistent full-time roles, direct PAYE employment is usually more cost-effective once the recruitment cost is amortised over 12+ months.
UK coverage only. Last reviewed: 05 July 2026. Estimates use 2026/27 assumptions and are for planning, not legal or tax advice.
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