Add each member of staff, their role, days worked, hours per shift and hourly wage rate. Enter your projected weekly revenue and the tool calculates your total wage bill, employer on-costs and labour cost percentage.
| Name / Description | Role | Days | Hrs/Day | Hourly Rate | NI % | Weekly Cost |
|---|
Food-led operations (restaurants, cafes, casual dining) typically target 25–35% labour cost as a percentage of revenue. Wet-led operations (pubs, bars) typically run at 20–28%. Fine dining may run higher due to skill requirements. Fast food and QSR operations aim for 20–25%.
From April 2024, employers pay National Insurance at 13.8% on earnings above the secondary threshold (currently £9,100 per year / £175 per week). Staff earning below this threshold attract no employer NI. Set the NI % to 0 for part-time staff below the threshold.
This tool calculates wages plus employer NI. For a complete picture of your true labour cost also factor in: holiday pay accrual (typically 12.07% of wages), pension contributions (minimum 3% employer contribution), and any uniform or training costs.
Labour cost is the most controllable major cost in hospitality. Key levers include scheduling to demand patterns rather than fixed rotas, cross-training staff to reduce headcount requirements, using a mix of full-time and zero-hours contracts, and monitoring covers-per-labour-hour as a productivity measure.
This calculator provides estimates based on the figures you enter. NI thresholds and rates change annually — always verify current rates with HMRC or your payroll provider. JWBIZ Ltd accepts no liability for payroll decisions made on the basis of this tool.