Enter your numbers
UK National Living Wage (21+) is £12.71/hr from April 2026
Your labour cost percentage
—
Weekly wage bill
—
Monthly wage bill
—
Annual wage bill
—
Cost per cover*
—
*Estimated at avg £15/head
This is a planning estimate, not payroll. It uses gross wages only — it does not include employer National Insurance, pension contributions or holiday pay accrual, so your true cost of employment is higher than the figure above.
What is labour cost percentage?
Labour cost percentage is the proportion of your revenue that goes to paying staff wages. It's one of the most important metrics for any hospitality business. In the UK, the typical range for restaurants, pubs, and cafes is 25–35% of gross revenue. Quick-service venues tend to be lower (20–25%), while fine dining often runs higher (30–40%).
How to reduce your labour costs
- Schedule based on demand. Match staffing levels to your busy and quiet periods rather than running the same rota every week.
- Track actual hours vs. scheduled hours. Late clock-ins and unapproved overtime add up fast. GPS clock-in removes guesswork.
- Cross-train your team. Staff who can cover multiple roles give you more flexibility without hiring extra heads.
- Reduce no-shows with shift swaps. Let staff arrange their own cover instead of leaving you short-handed.
UK minimum wage rates from April 2026
Rates apply UK-wide
Also useful: holiday entitlement calculator
Calculate statutory holiday for full-time, part-time and zero-hours staff. Covers pro-rata and the 12.07% accrual method.