SGF Publish Real Business Cost of Employment 2025

On the 1st of April, the UK National Living Wage increased to £12.21 per hour, a 6.7% increase on 2024/25. This is alongside employer’s National Insurance (NI) contributions increasing from 13.8% to 15%, while the threshold from which employer NI is charged fell from £9.1k to £5k.

The collaboration between SGF and University of Stirling has revealed that the true cost for retail employers will be as much as £16.72 per hour. This is a jump of £1.33 on the previous year. The study accounts for statutory costs, such as National Insurance and Holiday Pay, as well as additional employment expenses such as uniforms and administration costs.

Meanwhile, a recent survey of SGF members shows that more than 97% of respondents were less likely to hire more staff, due to the wage increases. Nine out of ten of owners/managers reported working over 55 hours per week, just to keep costs down.

If the current trend continues the NLW is on course to almost double within a decade (£7.20 in 2016 to £12.21 in 2025). SGF continues to make the case that above-inflation increases force stores to cut staff hours and threaten the sector’s viability.

The Real Business Cost of Employment 2025 paper will form part of SGF’s annual submission to the Low Pay Commission, for inclusion in its report and recommendations to the Prime Minister later this year.

You can read the report on our website here.

You can also read the associated press release here.