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
Local Universities
The top local universities in United Kingdom are as follows:
Local: 1
World : 12
Local: 2
World : 17
Local: 3
World : 42
Local: 4
World : 53
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 |
Talent Sourcing Tips
Adzuna, Indeed UK, Monster UK, Reed UK
36,900,000
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.
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.
The probationary period for employees ranges from 3 – 6 months.
| 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 |
| 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
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.
Taxes
| 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. |
| 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% |
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 |
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:
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;
Visa and Immigration
In the United Kingdom, there are different kinds of Visas depending on the following;
There are a number of Work visas depending on;
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
| 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 |
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. |
