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.

Calculate logistics employer cost Full employer cost calculator Cost by salary Employer NI by salary

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

Use the live tools

Calculate logistics employer cost Cost of hiring a delivery driver Cost of employing by salary Employer NI by salary Auto-enrolment pension calculator

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.

Official UK references

HMRC rates and thresholds Employment Allowance Pensions Regulator guidance Our methodology Our source list

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: 19 August 2026. Estimates use 2026/27 assumptions and are for planning, not legal or tax advice.

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Written and reviewed by James Whitfield and the editorial team.

Every figure is checked against current HMRC and GOV.UK guidance and reviewed for the 2026/27 tax year. We explain the numbers in plain English with worked examples. Editorial standards · About us