Understanding the Real Cost of Hiring with Our New Calculator Tool
when managing budgets fro hospitality recruitment, it’s easy to focus solely on salary. However, the actual cost of employing someone goes beyond base pay. From National Insurance (NI) contributions to pension obligations, the expenses add up—and vary based on job role and contract type. With this in mind, we’re thrilled to introduce our new calculator tool, specifically designed to help you determine the full cost of employing staff, based on current figures from the 2024-25 financial year. Here’s how it works and how it can help guide your staffing decisions.
The tool provides requests an average hourly rate for key roles within hospitality, helping you budget accurately from the start. Here’s a quick guide to some average rates: (based on a 45 hour week)
You can adjust these rates in the calculator to reflect regional differences or the specific level of experience you’re looking for.
Employers in the UK are required to pay National Insurance (NI) for each employee earning above a certain threshold (£175 per week). Our calculator considers the current NI rate of 13.8% for employees with a gross income over £175 per week. NI can be a significant part of employment costs, particularly in roles with higher wages, and understanding this expense is key to making informed hiring choices.
With anticipated changes to employer NI contributions in the next budget, we’re prepared to update the calculator so you can stay ahead of evolving requirements.
Check out the details and national insurance tables here
For all qualifying staff, employers are obligated to make a minimum pension contribution of 3% under the UK’s workplace pension scheme. This contribution, combined with NI, contributes to a more realistic picture of annual employment costs. Factoring these into your budget ensures compliance and helps you anticipate the true cost of a full-time team member. pension contributions are only applicable after £120.00 weekly threshold.
For businesses in seasonal sectors like hospitality, committing to full-time staff year-round can strain cash flow especially in the low season, employing a full roster may not be financially sustainable. By hiring relief chefs during these months, you gain the flexibility to scale down costs when customer demand is lower.
Relief chefs offer skilled support without the long-term commitment, enabling you to balance staffing with business needs more precisely. This approach not only alleviates cash-flow pressure but also ensures staffing levels are met, without the ongoing commitment to a full time chef.
Our calculator tool is based on the latest data from the 2024-25 financial year, making it a reliable resource for current hiring decisions. As updates to employer NI contributions and other employment costs are expected in the upcoming budget, our tool will reflect these changes to help you remain compliant and financially prepared.
Whether you’re assessing the cost of a new hire, comparing full-time versus relief staff, or planning for the low season, our calculator is designed to provide clarity and confidence in your budgeting process.
Try The Calculator Below
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