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13.80% - National Insurance Rate
Up to 3% - Pension Fund
0% - Up to 11,850
20% - 11,850 - 46,350
40% - 46,350 - 150,000
45% - Over 150,000

Minimum Wage


Age 18-20: £6.15 Age 21-24: £7.70 Age 25 and Over: £8.21

Working Hours


Fulltime employment is 48 hours weekly on average (maximum calculated from normal average over 17 weeks). Normal working hours are set in th eemployment contract.


Doesn't need to be paid, however, typically is detailed in the contract.



20% standard rate.


Payroll Frequency

Salaries are paid either on bi-weekly basis or monthly basis. If paid on monthly basis, payday is the 14th of each month.

Mandatory Benefits

Pension Fund

The tax year in changes in April, which may bring new threshold applicable for SS and tax purposes. Workplace pension contribution is mandatory, and can be postponed in the first 3 months of employment contract. The employer contributes up to 3% of the employee’s earnings, the monthly minimum is 67.2 GBP. As an employer, there are duties that you must comply with under the auto enrollment scheme. You must:

• Comply with your duties

• Have a suitable scheme

• Register your arrangement with The Pensions Regulator

• Auto enroll Eligible jobholders

• Make contributions

• Keep records

• Re-enroll opt outs periodically

You must not:

• Refuse to comply

• Miss your staging date

• Miss making contributions

• Incentive workers to opt out

• Treat workers unfairly.

The employee contributes at least 0.8% of the earnings.

Social Security

All employees are assigned a national insurance category letter: A - All employees apart from those in groups B, C, J, H, M and Z in this table; B- Married women and widows entitled to pay reduced National Insurance; C- Employees over the State Pension age; J- Employees who can defer National Insurance because they’re already paying it in another job; H- Apprentice under 25 M- Employees under 21; Z- Employees under 21 who can defer National Insurance because they’re already paying it in another job.

Income of £116 to £162 a week (£503 to £702 a month): A- Both Employer and Employee: 0% B- Both Employer and Employee: 0% C- Both Employer and Employee: N/A J- Both Employer and Employee: 0% M- Both Employer and Employee: 0% Z- Both Employer and Employee: 0%

Income of £162.01 to £892 a week (£702.01 to £3,863 a month): A- Employer: 13.8%, Employee: 12% B- Employer: 13.8%, Employee: 5.85% C- Employer: 13.8%, Employee: N/A J- Employer: 13.8%, Employee: 2% H- Employer: 0%, Employee: 12% M- Employer: 0%, Employee: 12% Z- Employer: 0%, Employee: 2%

Income of over £892 a week (£3,863 a month): A- Employer: 2%, Employee:2% B- Employer: 2%, Employee:2% C- Employer: N/A, Employee:N/A J- Employer: 2%, Employee:2% H - Employer: 2%, Employee: 12% M- Employer: 2%, Employee: 2% Z- Employer: 2%, Employee: 2%.


Termination Process

Employers are required to give employees notice of one week if the employees has worked at the company for at least one month. An additional weeks notice is required for each year employed after the first year. However, other periods may be listed in the contract.

Advance Notice

Employee must provide at least 1 week of advance notice, however, this may be defined differently in the employment contract.

Severance Pay

After two years of employment severance pay is according to age:

  • Half weeks' pay for each full year under 22.
  • One week for each full year over 22, but under 41.
  • One and a half weeks pay for each full year over 41. Length of service is capped at 20 years.