Social security 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.

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Social security in the UK – Overview

The United Kingdom has a comprehensive social security system covering health and disability, unemployment, retirement and other forms of assistance.

Social security is funded partly out of general taxation and partly out of mandatory contributions, such as National Insurance.

What does the social security system in the UK cover?

The social security system in the United Kingdom covers a wide range of benefits, including retirement pensions, disability benefits, and jobseeker’s allowance. It also offers free healthcare and education for all citizens. In addition, the system provides financial assistance for low-income families and individuals. The social security system in the United Kingdom is one of the most comprehensive in the world.

What are the mandatory contributions for employees to social security in the UK?

Social security contributions in the United Kingdom are based on salary. The employee pays approximately 12% of their monthly salary between £ 737 and 4,189, and 2% of their monthly salary above £ 4,189.

What are the mandatory contributions for employers to social security in the UK?

Employer mandatory social security contributions in the UK are approximately 13.8%.

How do mandatory contributions compare to the surrounding countries?

Mandatory contributions for employers in the United Kingdom are fairly low in comparison to surrounding countries. For example, mandatory contributions in Spain are approximately 32.1% of the employee’s salary, and in France it is 42%.

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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 185 countries worldwide. All you need to do is focus on your business.

FAQs

How much do employers need to contribute to social security in the UK?

Employers need to contribute approximately 13.8% of an employees salary to social security in the United Kingdom. This includes National Insurance and the Health and Social Care Levy.

What situations does social security cover for employees in the UK?

Social security in the United Kingdom covers employees for a wide range of situations, including healthcare, dental care, unemployment benefits, state pension, and disability benefits.

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