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Country Payroll Guide United Kingdom
We deliver secure, compliant, accurate and touchless global payroll for United Kingdom.
Key Facts
- Capital
- London
- Date format
- dd/mm/yyyy
- Currency
- Pound Sterling (GBP)
- VAT
- the standard rate is 20%
Contributions
Employers
- National Insurance Rate
- National Insurance Rate - 0% to 13.8%
- Pension Fund
- Pension Fund - 3%
- Total Employment Cost
- Total Employment Cost - 0% to 16.8%
Employees
- National Insurance Rate
- National Insurance Rate - 0% to 2%
- Pension Fund
- Pension Fund - 5%
- Total Employee Cost
- Total Employee Cost - 0% to 7%
Minimum Wage
- Minimum Wage
- The minimum wage in United Kingdom is 4.30 to 8.91 GBP per hour
Payroll
- Payroll Cycle
- Monthly
- 13th Salary
No 13th salary.
Income Tax
- Employee Income Tax (1)
- Up to 12,570 GBP - 0%
- Employee Income Tax (2)
- 12,571 - 50,270 GBP - 20%
- Employee Income Tax (3)
- 50,271- 150,000 GBP - 40%
- Employee Income Tax (4)
- Over 150,000 GBP - 45%
Working Hours
- General Working Hours
48 hours maximum.
- Overtime
Overtime must be stated and agreed upon in the employment contract.
Leave
- Paid Time Off
Minimum of 28 days.
- Public Holidays
8 public holidays in England, Wales and Scotland. There are 10 in Northern Ireland.
- Sick Days
You can get £96.35 per week Statutory Sick Pay (SSP) if you’re too ill to work. It’s paid by your employer for up to 28 weeks.
- Maternity Leave
52 weeks (26 weeks ordinary maternity leave & 26 weeks additional maternity leave).
- Paternity Leave
2 weeks (after the birth).
- Parental Leave
Up to 50 weeks of leave is shareable with up to 37 weeks of pay between the couple. (Before the child is reaches one years of age).
Termination
- Termination Process
Staff must be dismissed fairly.
- Notice Period
At least one week’s notice if employed between one month and 2 years one week’s notice for each year if employed between 2 and 12 years 12 weeks’ notice if employed for 12 years or more. As well as statutory redundancy pay, your employer should either: pay you through your notice period pay you in lieu of notice depending on your circumstances.
- Severance Pay
An employee will recieve half a week’s pay for each full year you were under 22, one week’s pay for each full year you were 22 or older, but under 41 one and half week’s pay for each full year you were 41 or older. Length of service is capped at 20 years.
- Probation Period
No legal requirement.
Visa
- Employment Visa
All non-EU/EFTA citizens need a UK work visa. Nationals from some countries are able to enter the UK and stay for up to six months without a visa; in this case, however, they cannot work.
