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11th April 2022

FOH hospitality workers set to benefit most from national living wage increases

Written by: Edward Waddell
Fourth, the global software provider for the hospitality and leisure industries, revealed that the new National Living Wage (NLW) rates will mostly benefit front-of-house workers, who will see their hourly wage increased to be more in line with that of their counterparts in back-of-house roles.

Fourth’s data, which is aggregated from the analysis of more than 700 companies across the hospitality sector, revealed that wages for back-of-house workers have ‘increased significantly’ over the last 12 months.

On average, over the last 12 months the rate of pay for pub workers has increased by 4.9% and for restaurant workers by 2.9%. Wages for pub workers aged 23+ have increased by 6.7% over the last 12 months; while wages for restaurant workers aged 23+ are up 4.3%.

Overall hospitality staff headcount is up by 27% on March 2021 but down by 12% on March 2020 and down by 15% on March 2019. British workers make up 55% of the workforce, EU workers make up 28% and non-EU workers make up 17%.  

Sebastien Sepierre, managing director – EMEA, Fourth, said: “As the hospitality industry continues on the road to recovery, it is evident that major obstacles still stand in the way. The Government’s decision to go ahead with the VAT increase from 12.5% to 20% has been met with disdain and the increase in the NLW rate, while good for workers, is set to put even more pressure on already squeezed margins.

“Given these challenges, it’s more important than ever that operators continue to plan ahead to protect their bottom line and maximise efficiencies when it comes to labour and inventory management. Technology and digital solutions play a key role in ensuring businesses can hire, train, engage and retain workers, providing smart solutions to work within their means and manage consumer demand in these testing times.”

The number of hours worked in March 2022 was 12% higher than the previous month (February 2022) but still 12% down on pre-pandemic levels recorded in February 2020.