Praxis Agents
ArticleSupporting benchmark4 min read

What Basic Capacity Costs in London

What does one unit of business capacity actually cost?

Benchmark

The salary is not the full cost

These figures are intentionally conservative. They exclude recruitment, onboarding, management time, hardware, software, holiday, sickness, and knowledge loss when someone leaves.

  1. £28,860

    37.5-hour London Living Wage salary

    Base pay at £14.80 per hour

  2. £33,118

    Minimum employer cost

    Adds employer National Insurance and minimum pension

  3. £35,388

    40-hour week equivalent

    Before recruitment, management, equipment, and churn

Sources

Official inputs used for the calculation

The totals are calculated from published rates as of April 3, 2026.

  • Living Wage Foundation

    London Living Wage at £14.80 per hour.

    View source
  • HMRC

    Employer National Insurance rate of 15% with a £5,000 threshold for 2026/27.

    View source
  • The Pensions Regulator

    Minimum employer auto-enrolment pension contribution of 3%.

    View source

Assumption noteThe main benchmark uses a 37.5-hour week across 52 weeks, then applies employer National Insurance and the minimum pension contribution. The 40-hour figure is shown separately for teams that use a longer standard week.

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By Greg Asquith, Founder, Praxis Agents

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