UK Businesses Saved by Unfair NI Tax Hike Thanks to Recruitment Partner’s Revolutionary Pricing

The National Insurance hike has arrived - and it’s making a bad situation worse.

With increased employers’ NI contributions, a lower NI threshold, and the national minimum wage jumping to £12.21, your agency labor costs are set to rise by over 20%.

And here’s the real “knife in the back”: if you’re using a fixed rate matrix to calculate your agency costs, you’re already overpaying.

Why Fixed Rate Matrices Are Costing You Thousands

Most agencies calculate their charge rates based on a 40-hour week.

But when’s the last time your warehouse workers actually hit 40 hours?

Between absences, holidays, and leavers, the real average is closer to 36 hours. But with a fixed rate matrix, you pay the same hourly amount whether someone works 40 hours or 30. That difference adds up—fast.

Here’s a simple example:

If you’ve got 50 agency workers, you’re likely overpaying by around £34,000 a year - and that’s before the NI increase kicks in.

Why Are You Paying for Hours That Aren’t Worked?

It sounds ridiculous, but that’s exactly what happens with fixed rate matrices. If someone works fewer hours, your labor costs should drop. But with the standard model, they don’t.

And when you factor in rising NI and wage costs, that overpayment is only going to get worse.

So, here’s the big question:

Why are you still using a fixed charge rate when labour costs change every week?

The Tempeo Method: Pay for What You Actually Use

At Tempeo, we do things differently. Our dynamic pricing method adjusts your costs in real-time, based on the actual hours worked—not some outdated 40-hour assumption.

If someone works less, you pay less. Simple.

We break down every cost - holiday pay, NI, pension, and statutory payments- so you’re only paying for what you actually use. 

And when the NI hike hits, that precision will make a massive difference to your bottom line.

Here’s what that looks like in real life:

✅ Client 1: Saved £109,000 a year for 130 staff per day.
✅ Client 2: Identified £23,000 in overspend with just 40 staff.
✅ Client 3: On track to save £247,000 annually for 249 agency workers.

If you’re still paying a fixed charge rate, you’re handing your money straight to the agency’s profit margin.

Your Costs Are Going Up - But Only if You Do Nothing

When the NI hike lands, your costs will automatically rise under a fixed model. With Tempeo’s dynamic pricing, you keep control - paying only for the hours worked, not what the agency assumed to be a full weeks hours within their rate matrix..

If you want to know exactly how much you could save, we’ll show you.

And if we can’t prove we’ll save you money? We’ll donate £100 to a charity of your choice.

Get in touch when you’re ready to stop overpaying..