Employee benefits in the
UK

SALARY PAYMENT IN British Pound (GBP, £)

CONTRACT LANGUAGE English

PAYROLL TAX 8.25%

PAYROLL CYCLE Monthly

TIME TO HIRE 12 hours
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Horizons-owned entity with local country experts in Manchester.

We offer fair, scalable, and transparent pricing on UK PEO service. Contact us for a cost breakdown

End service in the UK with no additional penalties or fees.

Complex UK pension calculations made simple with Horizons.

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Healthcare in the UK

Healthcare in United Kingdom is covered by the National Health Service (NHS). Employers can offer private healthcare as a benefit but there is no statutory requirement to provide any healthcare benefits as employees receive comprehensive healthcare under the NHS.

Private healthcare is a popular employee benefit in the UK, as it allows for shorter waiting times for medical appointments, more choice and access to specialists and access to private hospital rooms. It can be expensive, but the employee can be enrolled in a salary sacrifice scheme to offset the cost.

Pensions in the UK

Employees in the United Kingdom receive a state pension at retirement age (currently 66) based upon their National Insurance Contributions (NIC). Employers are also required to provide a private pension plan and make contributions of at least 3% of an employee’s salary. Employees must pay in a minimum of 5% of their annual salary, but the maximum tax-free amount is £40,000 per year.

Employees may opt-out of the workplace pension, but the default must be auto-enrolment. This means that each employee is opted-in and must complete a form to opt-out.

Disability in the UK

Disability is covered under the social care scheme in the United Kingdom. People who are unable to work long-term due to disability can claim additional government benefits. Employees receive free treatment for chronic/long-term conditions under the NHS. In some instances employees with a disability may qualify for Access to Work to support them with. This can include British Sign Language Interpreters to assist with job interviews and support workers.

Employees who are unable to work for a period of time due to illness are entitled to Statutory Sick Pay (SSP) which pays a minimum of £99.35 per week for a minimum of 28 weeks. To claim this, employees must provide a medical certificate after 7 days of absence. However, most employers pay a higher amount of sick pay than the statutory minimum.

Standard practice is:

0 to 20 days = 100% salary
From 21st day to 40th day = 50% salary
From 41st day to 140th = SSP applies.

Unemployment in the UK

People who are unable to find work in the UK can usually claim Universal Credit, which is a monthly payment to cover living costs. People claiming Universal credit for unemployment are usually expected to be available for work and actively seeking employment.

Hiring in the UK, Made Easy

Your business can easily hire employees in the UK without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.

FAQs

What employee benefits are mandatory in the UK?

The following employee benefits are mandatory in the UK:

a minimum of 20 days holiday plus bank holidays (or alternative days if they are expected to work bank holidays).
a workplace pension
maternity/paternity pay.

What employee benefits does Horizons cover in the UK?

We can offer private healthcare benefits: Horizons Health by SafetyWing® and a pension scheme with a government-funded pension provider (NEST).

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"As a seed-stage, London-based startup, we were initially hesitant to expand internationally due to the administrative workload involved. Horizons completely took the headache out of the process, allowing us to hire a team of software engineers in Germany."

Gabor SzedlakCo-founder & COO

"I truly appreciated the thoroughness and the professionalism of Horizons personnel while we hired internationally with them. When they advised our international expansion, they spoke confidently and were knowledgable on all subject matters pertaining to international employment."

Gary PaskyVice President of Software Development

"On deciding to begin commercial activities in Asia Pacific, we needed a provider to handle the employment and remuneration of our workforce. With Horizons the result was fast, efficient, and fit-for-purpose. We recommend Horizons as an EOR provider.”

Chris MorrellManaging Director

"The collaboration with the Horizons team is excellent. Both our local employee as well as our HQ in Germany are more than pleased with the support provided and the simplicity of the service. We can highly recommend the Horizons solution to anyone."

Christoph EngelbertCo-Founder & CTO

"We needed an EOR that could provide expert support for payroll in APAC. We are pleased with Horizons’ expertise and the fact that they are flexible, responsive, and easily accessible from Belgium. They were able to provide services within the short timeline we required."

Katia FlamandHuman Resources

Horizons has been very effective in providing our company support in all the administrative procedures, sometimes complex, required by the Singaporean administration.

Gerald iannoneSales Director

Horizons’ team provided a superb service from start to finish, making a complex process a simple one. Everything was taken care of in an efficient and accurate manner, with quick communication whenever required. Highly recommended and would use again in the future if the need arises.

Philipp RinbergerManaging Director