National Living Wage (April 2024): £11.44/hour for 21+
Include NI, pension, benefits, equipment, etc.
How It Works
This labour cost calculator helps you quickly calculate accurate figures for your business. Designed with catering businesses in mind.
Simply enter your values into the calculator above, and instantly receive detailed breakdowns of your calculations. All computations are performed securely in your browser - no data is sent to our servers.
Labour Cost Considerations for London Businesses
UK-wide wage laws apply
National Living Wage is the same across the UK. Actual wages you pay will vary by role, industry, experience, and competitive market factors.
London businesses span finance, technology, professional services, and creative industries.
When calculating labour costs in London, remember that UK-wide requirements apply: employer National Insurance (13.8% above £9,100 annually per employee), statutory pension contributions (minimum 3%), and holiday pay (12.07% for 5.6 weeks annual leave).
Some London employers voluntarily pay the London Living Wage (£13.15/hour as of 2024), which is higher than the statutory National Living Wage, due to higher cost of living.
Examples
Example 1: An employee earns £15/hour, works 40 hours/week. With 30% overheads, the true cost is £19.50/hour.
Example 2: £12/hour wage at 37.5 hours/week with 35% overheads equals £16.20/hour total cost.
Frequently Asked Questions
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