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EOR IN United Kingdom (UK)
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A guide to employing and growing your team in United Kingdom (UK)
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The United Kingdom maintains a highly developed, service-oriented economy with a strong emphasis on finance, technology, and professional services. The UK employment framework is governed primarily by the Employment Rights Act, which provides comprehensive protections for workers. As of April 1, 2026, the National Living Wage for those aged 21 and over is £12.71 per hour.
Employer Contributions
National Insurance Contribution: 15% (Exempt from the first £5,000 of pay per year)
Pension Fund: 3% minimum
Total Employer Contribution: 18%
Employee Payroll Taxes
National Insurance Contribution: 12% (for weekly pay range £1,048 to £4,189) and 2% (for amount exceeding £4,189)
Pension Fund: 5% minimum
Total Employee Contribution: 17%
Employee Income Tax Rates
Up to £12,570: 0%
£12,570 – £50,270: 20%
£50,270 – £125,140: 40%
Above £125,140: 45%
Statutory Leave
Employees are entitled to 5.6 weeks of paid annual leave per year (capped at 28 days). This includes the 8 public bank holidays commonly observed in England and Wales.
Pregnancy and Maternity Leave
Female employees are entitled to 52 weeks of maternity leave. Statutory Maternity Pay (SMP) is paid for up to 39 weeks; for the first 6 weeks, it is 90% of average gross weekly earnings, and for the following 33 weeks, it is £156.66 per week or 90% of average earnings (whichever is lower).
Paternity Leave
Eligible employees are entitled to 1 or 2 weeks of paid paternity leave, which must be taken within 52 weeks of the child’s birth. Statutory Paternity Pay is £194.32 per week or 90% of average weekly earnings (whichever is lower).
Work-Related Injury Leave
Parental Leave: Employees may be eligible to share up to 50 weeks of leave and 37 weeks of pay between parents through the Shared Parental Leave (SPL) scheme.
Other Leaves: Includes up to 28 weeks of Statutory Sick Pay (SSP) at £99.35 per week for qualifying illnesses, unpaid time off for public duties (e.g., jury service), and statutory bereavement leave.
Termination Process
Termination of employment must be handled fairly and in accordance with the contract and employment law. Employers must provide a valid reason for dismissal and follow a fair disciplinary or redundancy process to avoid claims of unfair dismissal.
Notice Period
Notice periods are typically defined by the employment contract, but statutory minimums apply: one week’s notice for each year of continuous service, up to a maximum of 12 weeks after 12 years of service.
Probation Period
Probation periods are not strictly mandated by law but are commonly included in employment contracts, typically lasting between 3 to 6 months. During this time, notice periods for termination may be reduced as specified in the contract.