Staff Scheduling Cost Calculator 2025/26

From April 2025, employer NI is charged at 15% on earnings above the secondary threshold of £5,000/year (reduced from £9,100). For a full-time employee earning the NLW of £12.21/hr (approximately £22,550/year), the employer NI cost is 15% × (£22,550 - £5,000) = 15% × £17,550 = £2,633/year or approximately £51/week. The Employment Allowance of £5,000/year reduces employer NI for eligible smaller businesses.

Agency staff are typically 25-40% more expensive per hour than equivalent direct employees but eliminate holiday pay, sick pay, employer NI and pension costs for the hirer. Agency staff are more cost-effective for: short-term seasonal demand peaks (avoiding the cost of hiring, training and terminating permanent staff); specialist skills needed for a defined project; covering unexpected absences; and managing headcount risk. For predictable core roles, direct employment is almost always cheaper in the long run.

Split shifts must comply with the Working Time Regulations 1998: a minimum of 11 consecutive hours rest between working days; a 20-minute rest break when working more than 6 hours. Zero-hours workers have the right to request a fixed-hours contract after 26 weeks under the Employment Rights Act 2024. They also have the right to reasonable notice of shifts and the right to turn down shifts outside their agreed hours. Holiday pay must accrue and be paid — HMRC has challenged employers calculating holiday pay only on basic pay, excluding regular overtime.