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What the 2027 National Living Wage costs a hospitality business

The National Living Wage rises from £12.71 to £13.21 an hour in April 2027. A full-time worker costs £1,121.25 more a year in pay and employer National Insurance.

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The April 2027 rates

The government accepted the Low Pay Commission's recommendations in full on 28 October 2026. From April 2027 the National Living Wage for workers aged 21 and over is £13.21, up 3.9% from £12.71. The rate for 18 to 20-year-olds is £11.27, the rate for under-18s and apprentices is £8.31, and the accommodation offset is £11.53 a day.

One full-time worker over a year

  • Pay, 2027/28£25,759.50
  • Employer National Insurance, 2027/28£3,113.93
  • Extra pay£975.00
  • Extra employer National Insurance£146.25
  • Extra cost a worker£1,121.25
An example: 37.5 hours a week for 52 weeks, aged 21 or over, at £12.71 and £13.21 an hour, with employer National Insurance at 2026/27 rates and before pension. Sources: GOV.UK National Minimum Wage rates; LPC recommendations accepted 28 October 2026; HMRC rates and thresholds 2026 to 2027.

Across a rota

Multiply £1,121.25 by the number of full-time-equivalent staff paid at the rate. A kitchen and floor team of twelve full-time equivalents adds £13,455 a year before pension contributions.

Tips and the minimum wage

Tips, service charges and cover charges do not count towards minimum wage pay. The rise has to come from wages, so it shows up in labour cost as a share of sales unless prices or hours change.

How we help

We model the April 2027 wage bill from your payroll and rota, and set it against your sales in Business Pulse. Try the labour cost calculator.

Common questions

What is the rate for 18 to 20-year-olds from April 2027?

£11.27 an hour.

Do tips count towards the National Living Wage?

No. Tips, service charges and cover charges do not count towards minimum wage pay.

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