Hiring in the United Kingdom through an Employer of Record
A UK employer pays National Insurance on top of salary and must pay into a workplace pension for most staff.
Employing someone in the United Kingdom through an Employer of Record costs their salary, plus 15 percent employer national insurance, 3 percent workplace pension, employer minimum, plus the vendor's own monthly fee, the lowest published being from $199 from RemoFirst. The charges were read from gov.uk and the other government pages listed below, last on .
What does an employer pay on top of salary in the United Kingdom?
- 15% Employer National Insurance
- 3% Workplace pension, employer minimum
Each charge, and what it is for
- Employer National Insurance: 15 percent on pay above a yearly threshold set by HMRC.
- Workplace pension, employer minimum: 3 percent of qualifying earnings, under automatic enrolment.
- Minimum wage: £12.71 an hour, the National Living Wage for workers aged twenty-one and over.
- National Insurance threshold: £5,000 a year. The employer pays National Insurance only on pay above this.
- Pension band, lower limit: £6,240 a year. The employer minimum is charged on pay from here.
- Pension band, upper limit: £50,270 a year, and not on pay above it.
These figures are in GBP, and the calculator below works in US dollars, so it does not apply them. Converting would need an exchange rate this site has not sourced.
Both rates are worked out here on the whole salary, while the law applies them only above a threshold or within a pay band, so the totals run slightly high.
What does one employee in the United Kingdom cost a year?
Salary plus the charges above plus the vendor's published monthly fee, for twelve months. "At least" marks a vendor whose published fee is a starting price. Not included: benefits and currency conversion fees.
Vendor fees used
Atlas HXM from $599, Deel from $599, G-P from $599, Multiplier from $459, Oyster $699, Pebl (Velocity Global) $399, RemoFirst from $199, Remote from $599, Remundo from $498, Rivermate from $349, Skuad from $199, Slasify from $250, Teamed from $599. Not published: Rippling.
Where these numbers come from
- Employer National Insurance on gov.uk read
- Workplace pension, employer minimum on gov.uk read
- Each vendor's own pricing page, linked from its name above.