Hire and pay employees in The United Kingdom compliantly from day one

Easily hire employees in The United Kingdom with Deel. Deel's best-in-class Employer of Record setup allows us to handle local laws, tax and benefits, and international payroll on your behalf in 150+ countries including The United Kingdom.

Backed by local experts and built-in compliance protection, your next hire could start in as little as 7 days with Deel.

Image

Onboard, pay and manage employees in The United Kingdom with Deel

Usually, to hire in The United Kingdom, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, and licensing, can take months.

Now you can hire employees in The United Kingdom quickly, easily and compliantly. Automate tax document collection, payroll, benefits, and more. And once your new hire is onboarded, Deel HR keeps their time off and documents in one place, so managing your team in The United Kingdom doesn't mean a separate system.

Already have an entity in The United Kingdom? Our PEO services can run payroll and compliance for your direct employees.

Image
Image
Currency
 Pound Sterling (GBP)
Image
Capital London
Image
Official language English
Image
Payroll cycle Monthly

All the necessary benefits for The United Kingdom built right in

Deel allows you to provide localised benefits for employees in The United Kingdom within minutes. All from one manageable online dashboard in a single HR platform.

  • Employers Liability Insurance
  • Professional Training
  • State Pension Fund
  • Private Healthcare - Unisure (optional)
  • Private Healthcare - Freedom (optional)
  • National Insurance (Social Security)
  • Private Healthcare - Allianz (optional)
  • Pension benefits - Penfold (optional)
  • Life Insurance - Allianz (optional)
  • Private Life Insurance - Canada Life (optional)

Image
Our quick-start guide to hiring in The United Kingdom

Navigate the tabs below to learn everything you need to know about hiring an employee in The United Kingdom

Minimum Wage Requirements

As of April 2025

As of 1 April 2024

National Living Wage

£12.21 per hour

£11.44 per hour

Full Time Employees (Monthly)

£2,116.40 per month

£1,982.93 per month

Full Time Employees (Annual)

£25,396.80 per year

£23,795.16 per year

18-20 year olds

£10.00 per hour

£8.60 per hour

16-17 year olds

£7.55 per hour

£6.40 per hour

Individual Income Tax

Individual income tax ranges from 0% to 45%. Income tax is calculated using progressive rates. Multiple additional factors may impact overall rates such as household status and the number of children.

Gross Annual Income Tax rate (%)
Up to £12,570 0%
£12,571 - £50,270 20%
£50,271 - £150,000 40%
Over £150,000 45%

There are slightly different tax rates and banding in Scotland; however, this is handled by the tax authorities. Employees resident in Scotland will have a slightly different tax code to ensure the correct taxation is applied.

Payroll Cost

The employer cost is generally estimated at 18.80% of the employee's salary.

  • National Insurance contributions - 15%

  • Mandatory private workplace pension - 3%

  • Apprentice tax levy - 0.5% of the employee's (NICable) salary

Employer National Insurance contributions are calculated on the portion of an employee’s salary over £417 per month. The minimum employer contribution for the mandatory private workplace pension is 3%, however the rate can be increased.
The apprentice tax levy is calculated on the employee’s NICable salary.

Optional and conditional costs:

  • Optional private health insurance
    • Single employee: GBP 67.70

    • Employee + children: GBP 98.55

    • Couple: GBP 129.40

    • Family: GBP 160.25

  • Optional life insurance - GBP 10, GBP 20, GBP 30 or GBP 40

  • Private health insurance admin fee - USD 15 per invoice with health insurance

  • Employer liability cost - an administrative fee of 0.30% is applied to ensure ongoing employer liability and workers' compensation cover

These costs are provided as estimates and are intended solely for general informational purposes. To fully comprehend all associated costs and fees related to the terms of any employment agreement for this country, please contact our sales team for a quote.

Overtime Pay & Maximum Hours

Standard working hours are 8 hours per day, 40 hours per week. The standard work week is from Monday to Friday. Overtime payment is not mandatory; however, an employee's average pay for the total hours they work must not fall below the National Minimum Wage.

Hiring in The United Kingdom, hassle-free

With Deel, your business can easily hire employees in The United Kingdom with our EOR solution. If you have an entity, our Global Payroll solution takes care of payroll and compliance for your direct employees. Our 250+ in-house experts handle everything, from managing local laws and complex tax systems to running your payroll in The United Kingdom and 150+ other countries.

Management fee
Image

Starting at

$599
/month
Estimated Employer Cost
Image
18.80%

of employee salary