Expand your global workforce in United Kingdom
Your guide to the employment landscape, working customs and local labor laws in United Kingdom
Capital
London
Currency
Pound Sterling (GBP)
Languages
English
GDP per Capita
$49,320.63
Employer Tax
16.80% + varying taxes
Payroll Frequency
Weekly or Monthly (within 25th-30th of the month)
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
United Kingdom
Top local universities in United Kingdom
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
Top Local Job Boards:
Adzuna, Indeed UK, Monster UK, Reed UK
Number of LinkedIn users:
36,900,000
Top Recruitment Agencies:
Where to find talent
Top Local Job Boards:
Top Local Job Boards
Number of LinkedIn users:
Number of LinkedIn users
Top Recruitment Agencies:
Top Recruitment Agencies:
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 |
Employ in United Kingdom
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 5 – 30 days.
Public and Provincial Holidays
| Date | Name | Type |
| January 1 | New Year’s Day | National Holiday |
| April 18 | Good Friday | National Holiday |
| May 5 | Early May Bank Holiday | National Holiday |
| May 26 | Spring Bank Holiday | National Holiday |
| December 25 | Christmas Day | National Holiday |
| December 26 | Boxing Day | National Holiday |
Local Holidays
| Date | Name | Localities |
| January 2 | 2nd January | SCT |
| January 25 | Burns Night | SCT |
| March 1 | St. David’s Day | WAL |
| March 17 | St Patrick’s Day | NIR |
| April 21 | Easter Monday | ENG, WAL, NIR |
| April 21 | Easter Monday | SCT |
| April 23 | St. George’s Day | All |
| July 12 | Battle of the Boyne | NIR |
| July 14 | Battle of the Boyne observed | NIR |
| August 4 | Summer Bank Holiday | SCT |
| August 25 | Summer Bank Holiday | ENG, WAL, NIR |
| November 30 | St Andrew’s Day | SCT |
| December 1 | St Andrew’s Day observed | SCT |
Employee Leaves
| Type of Leave | Time Period | Mandatory |
| Annual/Earned Leave | 28 days | Yes |
| Sick Leave | 196 days | Yes |
| Maternity Leave | 52 Weeks | Yes |
Leave Compliance
Payroll in United Kingdom
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 rates applicable from April 1, 2025 is as follows:
Read more
Overtime pay
There is no statutory law for overtime pay in the United Kingdom.
How taxes work
Employer Payroll Tax:
| Category | Rate |
| National Insurance Contributions (NIC) | 13.8% (Above GBP 9,100) |
| 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) | 8% [For earnings between GBP 12,571 and GBP 50,270. Additional 2% will be added, if the income is above GBP 50,270.] |
| Pension Fund | 4% |
Employee Income Tax:
England and Northern Ireland
| Band | Taxable Income (in GBP) | Tax Rate |
| Personal Allowance | 0 to 12,570 | 0% |
| Basic Rate | 12,571 to 50,270 | 20% |
| Higher Rate | 50,271 to 125,140 | 40% |
| Additional Rate | Above 125,140 | 45% |
Scotland
| Band | Taxable Income (in GBP) | Tax Rate |
| Personal Allowance | 0 to 12,570 | 0% |
| Starter Rate | 12,571 to 14,732 | 19% |
| Basic Rate | 14,733 to 25,688 | 20% |
| Intermediate Rate | 25,689 to 43,662 | 21% |
| Higher Rate | 43,663 to 75,000 | 42% |
| Advanced Rate | 75,000 to 125,140 | 45% |
| Top Rate | Above 125,140 | 48% |
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%.
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
Employee offboarding
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
Read more
Your employment toolkit for United Kingdom
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150+ countries
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Overtime Pay
Minimum Wage
- National Living Wage (21 and over): GBP 12.21 (British pounds)
- 18-21 year old rate: GBP 10.00
- 16-17 year old rate: GBP 7.55
- Apprentice rate: GBP 7.55
- Accommodation Offset: GBP 10.66
Overtime Pay
Visa and 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. |