Talent Wiki - United Kingdom
Your quick guide on talent and labor compliance norms in The United Kingdom
Capital
London
Currency
Pound Sterling (GBP)
Languages
English
Payroll Frequency
Weekly or Monthly (within 25th-30th of the month)
GDP per Capita
$47,318
Employer Tax
16.80% + varying taxes
Talent Overview
The United Kingdom is famous for its progressive economy. The country ranks 6th in the world in terms of economic size. According to the International Monetary Fund, the UK holds the position of 5th largest Nominal GDP.
Major economic hubs:
London, Manchester, Liverpool, Leeds, Glasgow, Birmingham
Skills in demand:
IT Business Analyst, Programmers, Software Engineers
Local Universities
The top local universities in the United Kingdom are:
University of Oxford
RANKING
Local: 1
World : 12
University of Cambridge
RANKING
Local: 2
World : 17
University College London
RANKING
Local: 3
World : 45
The University of Edinburgh
RANKING
Local: 4
World : 52
London School of Economics and Political Science
RANKING
Local: 5
World : 81
Salary Data
The average salary in the United Kingdom are mentioned below:
| Job Title | Average Monthly Salary Range (GBP) | Average Monthly Salary Range (USD) |
| Financial Manager | 149,000 GBP | 171141.40 USD |
| General Manager | 131,000 GBP | 150466.60 USD |
| Business Development Manager | 116,000 GBP | 133237.60 USD |
| Financial Analyst | 93,100 GBP | 106934.66 USD |
| Business Analyst | 91,300 GBP | 104867.18 USD |
| Project Manager | 89,000 GBP | 102225.40 USD |
Talent Sourcing Tips
Top Local Job Boards:
Adzuna, Indeed UK, Monster UK, Reed UK
Number of LinkedIn users:
33,500,000
Top Recruitment Agencies:
Employing in The United Kingdom
When employers are boarding an individual from the United Kingdom, there are employment laws and regulations along with allowances and benefits. This section elaborates on payroll, benefits, minimum wage, and taxation for employers.
Employee Contract:
According to the United Kingdom labor law, the employment contract is mandatory. The employment contract must be given within a month of commencement. The contract should mention all the benefits, allowances, and leaves, along with the terms and conditions of service. There is no statutory language for employment contracts, but all documents have to be in English.
Probation Period
The probationary period for employees ranges from 3 – 6 months.
Public and Provincial Holidays
| Date | Name | Type |
| 1 Jan | New Year’s Day | Bank Holiday |
| 3 Jan | New Year’s Day observed | Bank Holiday |
| 4 Jan | Substitute day for 2nd January(Sunday) | Local Bank Holiday (Scotland) |
| 17 Mar | St Patrick’s Day | Local Bank Holiday (Northern Ireland) |
| 15 Apr | Good Friday | Bank Holiday |
| 18 Arp | Easter Monday | Common local holiday (England, Wales, Northern Ireland) |
| 2 May | Early May Bank Holiday | Bank Holiday |
| 2 Jun | Spring Bank Holiday | Bank Holiday |
| 3 Jun | Queen’s Platinum Jubilee | Bank Holiday |
| 12 Jul | Battle of the Boyne | Local Bank Holiday (Northern Ireland) |
| 29 Aug | Summer Bank Holiday | Common local holiday (England, Wales, Northern Ireland) |
| 30 Nov | St. Andrew’s Day | Local Bank Holiday (Scotland) |
| 25 Dec | Christmas Day | Bank Holiday |
| 26 Dec | Boxing Day | Bank Holiday |
| 27 Dec | Substitute Bank Holiday for Christmas Day | Bank Holiday |
Employee Leaves
| Type of Leave | Time Period | Mandatory |
| Annual/Earned Leave | 28 days | Yes |
| Sick Leave | 196 days | Yes |
| Maternity Leave | 52 Weeks | Yes |
Payroll
Payroll Cycle
The payroll cycle in the United Kingdom is Monthly (within the 25th-30th of the month).
Overtime Pay
There is no statutory law for overtime pay in the United Kingdom.
Bonus
13th Month Pay:
There is no statutory law for 13th-month pay in the United Kingdom. But it can be provided at the discretion of the employer or if mentioned in the employment contract.
Employee Benefits:
- Insurance Contribution
- Health Insurance
- Pensions
- Voluntary benefits
Taxes
Employer Payroll Tax:
| Category | Rate |
| National Insurance Contributions (NIC) | 13.8% |
| Digital Services Tax (DST) | 2% |
| Customs and Excise Duty | EU’s Common Customs Tariff provides the rates of duty and vary widely. |
| Stamp Taxes | 0.5% |
| Apprenticeship Levy | 0.5% |
| Pension Protection Fund Levy | This compensation is mainly for pensioners and employees of failed schemes. Based on pension fund liabilities and the financial risk of the employing company funds the pension scheme. |
Employee Payroll Tax:
| Category | Rate |
| National Insurance Contributions (NIC) | 12% [No contributions till first GBP 184/week. 12% contribution for GBP 184.01 to GBP 967/week. Additional 2% will be added, if the income is above GBP 967/week.] |
| Pension Fund | 5% |
Employee Income Tax:
England and Northern Ireland
| PAYE tax rates and thresholds | 2022 to 2023 |
| Employee personal allowance | £242 per week
£1,048 per month £12,570 per year |
| English and Northern Irish basic tax rate | 20% on annual earnings above the PAYE tax threshold and up to £37,700 |
| English and Northern Irish higher tax rate | 40% on annual earnings from £37,701 to £150,000 |
| English and Northern Irish additional tax rate | 45% on annual earnings above £150,000 |
Scotland
| PAYE tax rates and thresholds | 2022 to 2023 |
| Employee personal allowance | £242 per week
£1,048 per month £12,570 per year |
| Scottish starter tax rate | 19% on annual earnings above the PAYE tax threshold and up to £2,162 |
| Scottish basic tax rate | 20% on annual earnings from £2,163 to £13,118 |
| Scottish intermediate tax rate | 21% on annual earnings from £13,119 to £31,092 |
| Scottish higher tax rate | 41% on annual earnings from £31,093 to £150,000 |
| Scottish top tax rate | 46% on annual earnings above £150,000 |
Wales
| PAYE tax rates and thresholds | 2022 to 2023 |
| Employee personal allowance | £242 per week
£1,048 per month £12,570 per year |
| Welsh basic tax rate | 20% on annual earnings above the PAYE tax threshold and up to £37,700 |
| Welsh higher tax rate | 40% on annual earnings from £37,701 to £150,000 |
| Welsh additional tax rate | 45% on annual earnings above £150,000 |
VAT:
The standard VAT rate of 20% applies to most goods and services, apart from domestic fuel and power and certain other reduced-rate supplies, which are subject to VAT at 5%.
Offboarding & Termination
The termination process depends on six fair rounds of dismissals:
- Employee’s capability or qualification to do the work
- Employee conduct
- Employee retirement
- Employee redundancy
- Unable to continue work due to restriction or contravening statutory duty.
- Any other substantial reason justifying dismissal
The notice period for United Kingdom employees varies on whether they are in their probationary status or not. For the former, the notice period will be up to 2 weeks, while the latter is up to 4 weeks.
Severance pay will be entitled if employed for 2 years or more. The employee will get;
- If the employee is under 22, then half a week’s pay for each full year
- If the employee is 22 but under 41, then one week’s pay for each full year
- If the employee is 41 or above, then one and half week’s pay for each full year
Visa and Immigration
In the United Kingdom, there are different kinds of Visas depending on the following;
- The country they are coming from
- Reason to travel the United Kingdom
- Number of days they want to stay
- Personal circumstances and skills
There are a number of Work visas depending on;
- Employee skills and qualifications
- If the employee has a job offer or sponsorship
- If the employee wants to bring family
- Employee’s purpose
To start a business one must need a Start-up Visa or Innovator Visa. The below table is about the work visa an employee needs
