Payroll Cycle
Minumum Wage
Category Minimum wage
Age of 23 years and older £9.50
Age of 21-22 years £9.18
Age of 18-20 years £6.83
Overtime Pay
Visa Immigration
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.

Talent Wiki - United Kingdom

Your quick guide on talent and labor compliance norms in United Kingdom
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Capital
London
Currency
Pound Sterling (GBP)
Languages
English
Payroll Frequency
Monthly (within 25th-30th of the month)
GDP per Capita
$41,900 (projected, 2022)
Employer Tax
16.80% + varying taxes

Supplementary Guide for Employment and Expansion in United Kingdom

Talent Overview

The UK is famous for its progressive  economy. The country ranks  6th in the world, in terms of economy 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

United Kingdom : 1

World : 15

University of Cambridge

RANKING

United Kingdom : 2

World : 24

University College London

RANKING

United Kingdom : 3

World : 44

The University of Edinburgh

RANKING

United Kingdom : 4

World : 52

University of Glasgow

RANKING

United Kingdom : 5

World : 74

Salary Data

The average salary in the United Kingdom are mentioned below:

Job Title Salary Range (GBP) Salary Range (USD)
Finance Manager 6,091 - 19,416 8,092 - 25,796
Full Stack Developer 2,641 - 9,083 3,508 - 12,068
Data Analyst 2,816 - 8,291 3,741 - 11,015
UX Designer 2,433 - 7,750 3,232 - 10,296
Product Manager 4,050 - 12,916 5,380 - 17,160
Customer Service Assistant 1,000 - 3,458 1,328 - 4,594

Talent Sourcing Tips

Top Local Job Boards

Adzuna, Indeed UK, Monster UK, Reed UK

Number of LinkedIn Users

33,600,000

Multiplier Recruitment Partner

iXceed

Employing in 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 UK 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 condition 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).

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Minimum Wage

To get more details about the minimum wage In the United Kingdom, click on the link below.

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Overtime pay

There is no statutory law for overtime pay in the UK.

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Health Examination Clause

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
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Taxes

Employer Payroll Tax

Category Rate
National Insurance Contributions (NIC) 15.05%
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.]
Capital Gains Tax (CGT) Chargeable gains on UK residential property and carried interest are subject to CGT rates of 28% (higher rate) and 18% (basic rate)
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

Termination Process

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

Notice Period

The notice period for UK 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

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 UK
  • ~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

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