The United Kingdom

Currency
British pound (GBP)
Payroll Frequency
Monthly
Employer Taxes
16.80%

About 

United Kingdom

The UK is a large island country off the northwest coast of Europe, it consists of England, Scotland, Wales, and Northern Ireland, plus numerous smaller islands. It was the world's first industrialized country and still has the fifth-largest economy in the world, with a particularly prominent financial sector.

Overview

Population
67,081,000
Language
English
Capital
London
Currency
British pound (GBP)
Country code
+44
Min wage
4.30 GBP to 8.91 GBP per hour depending on age
Working hours
8 hours per day
Weekdays
Monday to Friday
Work hours per week
40 hours per week

Payroll

Cycle

Monthly

Avg employer tax

16.80%

Taxation

Tax breakdown - Employer

The breakdown of employer contributions varies depending on the employee's national insurance category (NIC). In the most common category (A), the breakdown is as follows:

  • Earnings at, or above Lower Earnings Limit, up to and including Secondary Threshold: 0.00%
  • Earnings above Secondary Threshold, up to and including Upper Secondary Threshold/Apprentice Upper
  • Secondary Threshold: 13.80%
  • Balance of earning above Upper Secondary Threshold/ Apprentice Upper Secondary Threshold: 13.80%
  • Employers Pension Contribution: 3.00%
VAT

20%

Holidays / PTO

Public holidays
  • 1 Jan: New Year's Day
  • 3 Jan: New Year Holiday
  • 15 Apr: Good Friday
  • 18 Apr: Easter Monday
  • 2 May: May Day
  • 2 Jun: Late May Bank Holiday
  • 3 Jun: Her Majesty The Queen’s Platinum Jubilee
  • 29 Aug: August Bank Holiday
  • 25 Dec: Christmas Day
  • 26 Dec: Boxing Day
  • 27 Dec: Christmas Holiday
Sick days

Employees are entitled to 28 weeks of sick leave, paid at a rate of 98.85 GBP per week through statutory sick pay (however, the first three days of any sick period are unpaid). Employers can choose to supplement these standard payments with additional compensation. Medical certificates are required if a period of sick leave exceeds seven days.

Maternity leave

Maternity leave in the UK is 52 weeks, of which at least two must be taken. Statutory maternity pay is given for the first 39 weeks at the rate of 90% of salary for the first six weeks and then either 90% of salary or 151.97 GBP per week (whichever is lower) for the subsequent 33 weeks.

Paternity leave

Paternity leave in the UK is one or two weeks commencing from the birth date. Payment is either 90% of salary or 151.97 GBP per week (whichever is lower).

Termination

Termination Process

Termination processes vary according to the type of contract, reason for termination, employment agreement, and any collective agreement. Dismissals can be adjudged either fair or unfair depending on how they were conducted and justified.

Notice Period

Statutory notice periods in cases of redundancy are one week (if the employee has served for between one month and two years) or one week's notice for each year of service (if the employee has completed between two and twelve years of employment). Payment in lieu of notice is also an option. Dismissal without notice is only possible in cases of gross misconduct.

Severance Pay

Only required when an employee is made redundant, severance pay amounts depend on the employee's age (assuming they have completed at least two years' service):

  • Under 22: half a week’s pay for each full year served
  • Between the ages of 22 and 41: one week’s pay for each full year served
  • Over 41: one and a half week's pay for each full year served
  • These calculations are subject to caps of 20 years for length of service and 540 GBP for weekly pay
Probation Period

The UK does not have statutory probation periods, common practice is between three and six months (with the exact amount stipulated in the employment contract).

Tax Calculation

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GB
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Top Countries
Employer cost
Total monthly cost of employment
GBP 9,633
Gross monthly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net monthly salary
GBP 5,137
Gross monthly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Employer cost
Total yearly cost of employment
GBP 9,633
Gross yearly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net yearly salary
GBP 5,137
Gross yearly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Request a detailed quotation

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The United Kingdom

Currency
British pound (GBP)
Payroll Frequency
Monthly
Employer Taxes
16.80%

About 

United Kingdom

The UK is a large island country off the northwest coast of Europe, it consists of England, Scotland, Wales, and Northern Ireland, plus numerous smaller islands. It was the world's first industrialized country and still has the fifth-largest economy in the world, with a particularly prominent financial sector.

Overview

Population
67,081,000
Language
English
Capital
London
Currency
British pound (GBP)
Country code
+44
Min wage
4.30 GBP to 8.91 GBP per hour depending on age
Working hours
8 hours per day
Weekdays
Monday to Friday
Work hours per week
40 hours per week

Payroll

Cycle

Monthly

Avg employer tax

16.80%

Taxation

Tax breakdown - Employer

The breakdown of employer contributions varies depending on the employee's national insurance category (NIC). In the most common category (A), the breakdown is as follows:

  • Earnings at, or above Lower Earnings Limit, up to and including Secondary Threshold: 0.00%
  • Earnings above Secondary Threshold, up to and including Upper Secondary Threshold/Apprentice Upper
  • Secondary Threshold: 13.80%
  • Balance of earning above Upper Secondary Threshold/ Apprentice Upper Secondary Threshold: 13.80%
  • Employers Pension Contribution: 3.00%
VAT

20%

Holidays / PTO

Public holidays
  • 1 Jan: New Year's Day
  • 3 Jan: New Year Holiday
  • 15 Apr: Good Friday
  • 18 Apr: Easter Monday
  • 2 May: May Day
  • 2 Jun: Late May Bank Holiday
  • 3 Jun: Her Majesty The Queen’s Platinum Jubilee
  • 29 Aug: August Bank Holiday
  • 25 Dec: Christmas Day
  • 26 Dec: Boxing Day
  • 27 Dec: Christmas Holiday
Sick days

Employees are entitled to 28 weeks of sick leave, paid at a rate of 98.85 GBP per week through statutory sick pay (however, the first three days of any sick period are unpaid). Employers can choose to supplement these standard payments with additional compensation. Medical certificates are required if a period of sick leave exceeds seven days.

Maternity leave

Maternity leave in the UK is 52 weeks, of which at least two must be taken. Statutory maternity pay is given for the first 39 weeks at the rate of 90% of salary for the first six weeks and then either 90% of salary or 151.97 GBP per week (whichever is lower) for the subsequent 33 weeks.

Paternity leave

Paternity leave in the UK is one or two weeks commencing from the birth date. Payment is either 90% of salary or 151.97 GBP per week (whichever is lower).

Termination

Termination Process

Termination processes vary according to the type of contract, reason for termination, employment agreement, and any collective agreement. Dismissals can be adjudged either fair or unfair depending on how they were conducted and justified.

Notice Period

Statutory notice periods in cases of redundancy are one week (if the employee has served for between one month and two years) or one week's notice for each year of service (if the employee has completed between two and twelve years of employment). Payment in lieu of notice is also an option. Dismissal without notice is only possible in cases of gross misconduct.

Severance Pay

Only required when an employee is made redundant, severance pay amounts depend on the employee's age (assuming they have completed at least two years' service):

  • Under 22: half a week’s pay for each full year served
  • Between the ages of 22 and 41: one week’s pay for each full year served
  • Over 41: one and a half week's pay for each full year served
  • These calculations are subject to caps of 20 years for length of service and 540 GBP for weekly pay
Probation Period

The UK does not have statutory probation periods, common practice is between three and six months (with the exact amount stipulated in the employment contract).

Tax Calculation

*
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
GB
*
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Top Countries
Employer cost
Total monthly cost of employment
GBP 9,633
Gross monthly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net monthly salary
GBP 5,137
Gross monthly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Employer cost
Total yearly cost of employment
GBP 9,633
Gross yearly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net yearly salary
GBP 5,137
Gross yearly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Request a detailed quotation