This April the UK hospitality industry faces increasing employment costs with the increase in employer National Insurance Contributions (NIC). Currently employers pay 13.8% contributions on salaries above the £9,100 threshold. From April 2025 the contributions increase to 15%. In addition to this the threshold is lowering to £5,000 which means that more part time employees will now be included in the employer NIC. UK Hospitality estimates this will cost the hospitality industry an additional £3.4 billion in taxes.
Monitoring payroll cost includes calculating the payroll cost as percentage of revenue each month but also tracking and benchmarking the numbers of hours worked and the revenue achieved per FTE. Our free ebook provides some hints and tips for measuring and managing the payroll cost.
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