Pre-filled with typical Retail figures: 12 employees, £25,000 average salary. Adjust the sliders for your actual numbers.
Minimum Wage Cost Calculator
The National Living Wage rose from £11.44 to £12.21/hr in April 2025 — a 6.7% increase. Enter your minimum-wage workforce to see the total payroll impact.
112200
837.548
Total Annual Payroll Increase
£18,018
+6.7% increase across 12 staff
Per employee increase£1,502/yr
Old annual cost (per person)£22,308
New annual cost (per person)£23,810
Monthly Payroll Increase
£1,502 /month
Rate Comparison
| Metric | Before | After (Apr 2025) | Change |
|---|---|---|---|
| Hourly rate (21+) | £11.44 | £12.21 | +£0.77 |
| Annual cost (37.5hrs/wk) | £22,308 | £23,810 | +£1,502 |
| Total (12 staff) | £267,696 | £285,714 | +£18,018 |
Retail — Key Concerns
- VAT threshold changes could force registration for smaller independent retailers
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- Online retail faces higher rates multiplier under reform proposals
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BrightPay
Payroll software trusted by 300,000+ businesses. Handles RTI, auto-enrolment, and the new NI rates automatically.
Try BrightPay Free for 60 Days →Frequently Asked Questions
- What is the National Living Wage for 2025/26?
- The National Living Wage for workers aged 21+ is £12.21 per hour from April 2025, up from £11.44 (a 6.7% increase).
- Does it apply to all workers?
- The NLW applies to workers aged 21+. Lower rates apply for 18-20 (£10.00), under 18 (£7.55), and apprentices (£7.55).
- What happens if I don't pay the minimum wage?
- HMRC can issue penalties of 200% of the underpayment (up to £20,000 per worker), name you publicly, and in serious cases pursue criminal prosecution.