National Living Wage 2027: what the £13.21 rate means for UK hiring costs
Ten full-time employees on the National Living Wage will add £9,100 to your gross pay bill from April 2027, before employer National Insurance and pension contributions are counted. This figure comes from the £910 rise in gross annual earnings for a full-time worker confirmed in the Autumn Budget 2026, and it is prompting UK businesses to look closely at the true cost of every hire.
What the National Living Wage 2027 changes
The National Living Wage rises by 3.9% in April 2027, reaching £13.21 per hour for workers aged 21 and over. The 18 to 20 rate moves to £11.27, and the 16 to 17 and apprentice rates move to £8.31.
Where the extra hiring costs appear
- Employer National Insurance, which grows as gross pay rises.
- Workplace pension contributions, which follow earnings upwards.
- Pay differentials, since supervisors and experienced staff expect a gap above the minimum.
Why outsourcing is becoming a competitive option
As in-house payroll costs climb, outsourcing with a provider such as Agility Outsourcing gives UK businesses an affordable route to extra support capacity. Outsourced roles such as admin, customer service and bookkeeping can offer a predictable monthly cost, which makes 2027/28 budgeting simpler. Comparing the full cost of an in-house hire, including National Insurance, pensions and recruitment, with an outsourced alternative gives a clearer view of the real difference.
How to prepare before April 2027
- Build the new rates into your payroll forecast. This should include the knock-on to employer National Insurance and pensions.
- Identify the roles and hours that make up most of your wage bill.
- Compare the full in-house cost of each support role with an outsourced option.
If you would like to see how outsourcing could fit into your 2027/28 hiring budget, our team would be glad to talk it through.
Ready to put this into practice?
Talk to our team for a free, no-obligation consultation.