Employer costs for an employee in the United Kingdom
Get a more in-depth look at what exactly goes into estimating employer and employee compensation costs in the UK, including pension, healthcare, insurance, and more.
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In this guide
A handy table with line-by-line employer costs such as National Insurance, healthcare, and Auto-Enrollment pension
Costs listed in GBP currency and USD
Numbers updated for 2023
International hiring introduces a whole new set of labor and tax laws that get complicated, fast. Deel handles all the local benefits, payroll, taxes, and compliance when hiring an international employee.
Even if they make the same salary, the cost of employees varies from country to country due to unique tax rates, healthcare requirements, and more. We estimated the total cost employers can expect when they hire an employee with a $100,000 salary in the UK.
For an interactive experience, try our Employee Cost Calculator
How to use the guide
This guide gives you a ballpark estimate of the costs of hiring employees in the UK. The final costs may differ from the provided estimates for a few reasons. Some countries assess tax by income levels, some have caps on total tax, some change based on particular industries, and some rates vary based on your employee’s city or region.
Also, since currency exchange rates fluctuate, salary costs can shift from month to month if you pay in a different base currency.
Your estimate generally doesn’t include costs for vacation, sick pay, private health insurance, and other employer-provided benefits. Onboarding expenses are also not included.
Deel handles all the local benefits, payroll, taxes, and compliance when hiring an international employee. These costs can vary globally, so we've estimated what a $100,000 salary may look like with mandatory taxes accounted for in the United Kingdom.