Retail sector

Cost of employing retail staff UK (2026/27)

Retail is the UK's largest private-sector employer, and the majority of retail staff are paid at or close to the National Living Wage. In 2026/27, a full-time retail assistant on NLW (£12.71/hour) earns approximately £24,785 per year. The employer's total cost — salary, employer NI (15% above £5,000) and minimum pension — is approximately £28,309 per year. For retailers employing large numbers of part-time workers, each individual employee has their own NI threshold assessment. The April 2025 threshold change (from £9,100 to £5,000) has added approximately £790 per full-time NLW employee per year in additional employer NI.

UK scope: England, Scotland, Wales and Northern Ireland employer payroll planning for the 2026/27 tax year.

Calculate retail staff employer cost Full employer cost calculator Cost by salary Employer NI by salary

Sample total cost

£28,309

£2,359 per month on £24,785 salary

Employer NI

£2,968

15% above £5,000 secondary threshold (2026/27)

Pension + overheads

£556

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

Retail sales assistant (NLW full-time): ~£24,785/year salary, ~£28,309 total cost.
Supervisor / team leader: £26,000–£32,000, total cost £30,300–£37,600.
Store manager (small format): £28,000–£40,000, total cost £32,800–£46,300.
Employer NI on NLW salary (£24,785): approximately £2,968/year.
Minimum pension on NLW salary: approximately £556/year.
April 2025 NI change adds ~£790/year per NLW full-time retail worker.

Use the live tools

Calculate retail staff employer cost Minimum wage employer cost 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 a part-time retail worker cost an employer?

A part-time retail worker on 20 hours per week at NLW (£12.71/hr) earns approximately £12,699/year. Employer NI on that salary is approximately £1,155 (15% of £7,699 above the £5,000 threshold) and minimum pension is approximately £195. Total employer cost before overheads: approximately £14,049/year. The NI threshold (£5,000) applies in full, not pro-rated for part-time hours.

Do retailers have to pay pension on minimum wage staff?

Yes, if the employee is aged 22–66 and earns more than £10,000/year. For full-time NLW staff earning £24,785, auto-enrolment is mandatory. For part-time staff earning under £10,000, they can opt in but are not automatically enrolled — however if they opt in, the employer must still contribute at minimum 3% of qualifying earnings.

How does Employment Allowance help retail employers?

For small retailers with total employer NI below £10,500/year, Employment Allowance can eliminate the entire NI bill. A small shop with five full-time NLW staff generates approximately £14,105 in total employer NI per year, so Employment Allowance (£10,500) would reduce net NI payable to approximately £3,605 per year. Larger retail chains above the eligibility criteria cannot claim.

UK coverage only. Last reviewed: 20 May 2026. Estimates use 2026/27 assumptions and are for planning, not legal or tax advice.