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Talent Wiki – United Kingdom

Your quick guide on talent and labor compliance norms in United Kingdom

Capital

London

Currency

Pound Sterling (GBP)

Languages

English

Payroll Frequency

Weekly or Monthly (within 25th-30th of the month)

GDP per Capita

$49,320.63

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

The United Kingdom - Map

Local Universities

The top local universities in United Kingdom are as follows:

University of Oxford

RANKING

Local: 1

World : 12

University of Cambridge

RANKING

Local: 2

World : 17

University College London

RANKING

Local: 3

World : 42

The University of Edinburgh

RANKING

Local: 4

World : 53

London School of Economics and Political Science

RANKING

Local: 5

World : 80

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 12,400 GBP 16,242 USD
General Manager 10,900 GBP 14,277 USD
Business Development Manager 9,660 GBP 12,653 USD
Financial Analyst 7,760 GBP 10,164 USD
Business Analyst 7,600 GBP 9,955 USD
Project Manager 7,420 GBP 9,719 USD
The United Kingdom

Talent Sourcing Tips

Top Local Job Boards:

Adzuna, Indeed UK, Monster UK, Reed UK

Number of LinkedIn users:

36,900,000

Top Recruitment Agencies:

iXceed

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 Details
1 Jan New Year’s Day Bank Holiday  
2 Jan 2nd January Local Bank Holiday Scotland
14 Jan Orthodox New Year Observance, Orthodox  
25 Jan Tu B’Shevat (Arbor Day) Jewish Holiday  
25 Jan Burns Night Local Observation Scotland
7 Feb Isra and Mi’raj Muslim  
8 Mar Maha Shivaratri Hindu Holiday  
11 Mar Ramadan Start (Tentative Date) Muslim  
17 Mar St Patrick’s Day Local Bank Holiday NIR
18 Mar Day off for St Patrick’s Day Local Bank Holiday NIR
24 Mar Purim Jewish Holiday  
29 Mar Good Friday Bank Holiday  
1 Apr Easter Monday Local Observation Scotland
1 Apr Easter Monday Common Local Holiday ENG, NIR, WAL
5 Apr Laylatul Qadr (Night of Power) Muslim  
10 Apr Eid ul Fitr (Tentative Date) Muslim  
23 Apr First day of Passover Jewish Holiday  
30 Apr Last day of Passover Jewish Holiday  
5 May Yom HaShoah Jewish Commemoration  
6 May Early May Bank Holiday Bank Holiday  
14 May Yom HaAtzmaut Jewish Holiday  
26 May Lag B’Omer Jewish Holiday  
27 May Spring Bank Holiday Bank Holiday  
12 Jun Shavuot Jewish Holiday  
17 Jun Eid al-Adha (Tentative Date) Muslim  
8 Jul Muharram/Islamic New Year (Tentative Date) Muslim  
12 Jul Battle of the Boyne Local Bank Holiday NIR
17 Jul Ashura (Tentative Date) Muslim  
5 Aug Summer Bank Holiday Common Local Holiday Scotland
13 Aug Tisha B’Av Jewish Holiday  
26 Aug Janmashtami (Smarta) Hindu Holiday  
26 Aug Janmashtami Hindu Holiday  
26 Aug Summer Bank Holiday Common Local Holiday ENG, NIR, WAL
6 Sep Ganesh Chaturthi Hindu Holiday  
16 Sep Milad un Nabi (Mawlid) (Tentative Date) Muslim  
3 Oct Rosh Hashana Jewish Holiday  
12 Oct Yom Kippur Jewish Holiday  
17 Oct First day of Sukkot Jewish Holiday  
23 Oct Hoshana Rabbah Jewish Holiday  
24 Oct Shemini Atzeret Jewish Holiday  
25 Oct Simchat Torah Jewish Holiday  
1 Nov Diwali/Deepavali Hindu Holiday  
2 Nov All Souls’ Day Observance, Christian  
30 Nov St Andrew’s Day Local Bank Holiday Scotland
2 Dec St Andrew’s Day observed Local Bank Holiday Scotland
25 Dec Christmas Day Bank Holiday  
26 Dec First Day of Hanukkah Jewish Holiday  
26 Dec Boxing 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).

Minimum Wage

In the United Kingdom, the minimum wage is as follows:

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

The United Kingdom

Streamline payroll and compliance for your international workforce

Payroll

Minimum Wage

Category Minimum wage
Age of 23 years and older £10.42
Age of 21-22 years £10.18
Age of 18-20 years £7.49

Overtime Pay

Visa & Immigration

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

Skilled Worker Visa Health & Care Worker Visa Intra-Company Visa Minister of Religion Visa
Overview Allows to come and stay in the UK to do an eligible job with an approved employer. Permits a medical professionals to come to or stay in the UK to do an eligible job with the NHS Allows to come to or stay in the UK to do an eligible job at your employer’s UK branch. The employee has been offered a job within a faith community in the UK
Eligibility • Work with Home office approved Employer • Certificate of Sponsorship from the employer with role mentioned • Pays a minimum Salary • Be a qualified doctor, nurse, or medical Professional • Work with Home office approved Employer • Certificate of Sponsorship from the employer with role mentioned • Pays a minimum Salary • Be an existing employee of the employer approved by the Home Office • Certificate of Sponsorship from the employer with role mentioned • Be paid at least 41,500 for Intra-Company Transfer Visa, or 23,000 for Intra-Company Graduate Visa • Certificate of Sponsorship • Prove knowledge of English • Employee must have personal savings to support stay in the UK • Travel history of last 5 years. • Tuberculosis report • Employee must be 18 or more.