United Kingdom

Last Update by Katie, 31 May 2024

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Exchange Rate

13 Jun 2024

 

Cost of Living

Indicative value for a working adult in a city: London

Publicly available data (Numbeo, etc..), verified by Marco’s in-country staff

Living Requirement Indicative Amount (GBP)
McDonalds Set Meal 8.00
Monthly Train and Bus Tickets 200
3 Bedrooms Rental (City Center) 4,422
3 Bedrooms Rental (Outskirt) 2,858

Current Inflation Rate

2.3%

Wage

Minimum Wages

  • Aged 21 +: 11. 44 GBP
    Age 18 to 20: 8.60 GBP
    Under 18: 6.40 GBP

Median Salary

Estimated based on general positions such as HR, Accounting, Admin roles, in tier one cities.

Job Level Monthly Salary (GBP)
Entry-Level
Fresh Graduate
2,000
Mid-Level
5 Years
3,700
Experienced & Managerial Level
10 Years
5,000
Specialized & Senior-Level
15 Years
6,000+

Annual Salary Growth

3.6%

Statutory Contribution

Country Level

Type Employer Rates Employee Rates Notes
National Insurance (NI) 13.8% for weekly earnings, income allowance over 123 GBP 8% weekly earnings, income allowance 242 GBP
+ 2% of the balance balance for weekly earnings over 967 GBP
All staff other than self employed
Workplace Pension (WPP) 3% 5% All staff other than self-employed

Other Benefit

Other common employment benefits in United Kingdom include:

  • Private Health Insurance: Around 90 GBP per month
  • Enhanced Pension Scheme: Higher employer contributions 4%-10%
  • Childcare Vouchers: 55 GBP /week
  • Bike to Work Scheme (B2W): Staff save 48.25% on the cost of bikes
  • Mobile Phone: Around GBP 50 per month
  • Enhanced Maternity Leave: 100% salary first 6 months, 50% salary for next 6 months
  • Internet Allowance: Around 40 GBP per month
  • Fitness Allowance: Around 50 GBP per month

Income Tax

Residents

  • Tax period: 6th April - 5th following April
    Filing start date: 5th April
    Due date: 31st October of the same year for paper forms,
    31st January of following year for online submissions

Country Level

Taxable Income Rate
0-12,570 0%
12,571 - 50,270 20%
50,271 - 125,140 40%
>125,140 45%

Non-residents

  • Income tax for non-residents is the same as residents

Working Hours

Statutory

40 hours
8 hours a day, 5 days a week

Typical practice

40 hours
Monday-Friday

Overtime

No statutory requirement.
Includes all overtime, the hourly rate must not fall below National Minimum Wage (NMW)

  • Must be stated in the contract (written statement of particulars)
  • Common practice: 1.5 times of regular hourly pay
    Bank holidays: 2 times regular hourly pay

Employment Contract

Fixed- Term

Minimum of 3 months but no longer than 4 years and can be renewed multiple times but the total service cannot last longer than 4 years.
Staff are classed as employees and have full employment rights.

Probation

3, 6 or 9 months

Termination

During probation: 1 week statutory notice, Both the employer and employee have the right to terminate without notice ‘no-fault dismissal’
After probation:

  • Notice Periods:
    - 1-2 years' service: 1 week
    - 2 - 12 years' service: 1 week for each year
    - 12+ years' service: 12 weeks
  • Settlement Agreement:
    - Legal contract between employer and staff
    - Payment up to 30,000 GBP tax free
  • Redundancy Pay:
    - Employees with 2+ years' service only
    - Aged 22-40: Length of service * average weekly salary
    - 40 years+: Length of service *1.5 weeks salary (weekly wages are capped at 643 GBP)
    - Total compensation capped at 19,290 GBP

Public Holiday

8 days
Public holidays in England, Scotland, Wales and Northern Ireland are subject to yearly government announcements

Country Level

Date Name
01 Jan New Year's Day
17 Mar St. Patrick's Day
29 Mar Good Friday
01 Apr Easter Monday
06 May Early May Bank Holiday
27 May Late May Bank Holiday
26 Aug August Bank Holiday
30 Nov St. Andrew's Day
25 Dec Christmas Day
26 Dec - 26 Dec Boxing Day

Leave

Leave Type Entitlement Notes
Annual Leave (AL) 28 working days (5.6 weeks / year) All staff-employer decides if inclusive of public holidays
Maternity Leave (MAT/SMP) 52 weeks Expectant mothers with 26 weeks continuous service
Paternity Leave (SPP) 2 weeks Expectant fathers with 26 weeks continuous service
Shared Parental Leave (SPL) 50 weeks shared between parents Expectant parents with 26 weeks continuous service
Bereavement Leave (SBPL) 39 weeks Parents who have lost a child from first day of service
Adoption Leave (SAP) 39 weeks Parents adopting a child with 26 weeks continuous service
Sick Leave (SSP) 28 weeks All staff

Reference

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