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Hiring in United Kingdom through an EOR (2026)
Here's what you need to know before you hire in United Kingdom: what it really costs an employer, the employment laws that shape the contract, and how an Employer of Record lets you hire compliantly without opening a local entity. Every figure below is sourced and dated.
13.7%Employer cost on top
2,203Minimum wage / mo
28 daysPaid annual leave
Days, not monthsTime to hire via EOR
Last updated: September 19, 2026
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United Kingdom at a glance
The statutory facts that drive a hire in United Kingdom. Each row shows where the figure comes from and how current it is, so you can trust the number and check it yourself.
Pay & working time
| Minimum wageper month | 2,203Current | National government · 2026 |
| Average wageper year | 66,299Aging | OECD · 2025 |
| Statutory work week | 48 hours/weekCurrent | National government · 2026 |
| Payroll cycle | monthlyCurrent | Research desk · 2026 |
| 13th-month salary | noneCurrent | Research desk · 2026 |
Employer cost & tax
| Employer social securityof gross salary | 13.7%Aging | OECD · 2025 |
| Employee social securitywithheld from pay | 5.6%Aging | OECD · 2025 |
| Total tax wedge | 32.4%Aging | OECD · 2025 |
| Corporate tax rate | 25%Current | OECD · 2026 |
Termination
| Notice period | 5.3 weeksCurrent | National government · 2026 |
| Severance pay | 5 weeksCurrent | National government · 2026 |
| Employment protectionOECD EPL, scale 0–6 | 1.9Aging | OECD · 2025 |
Leave & time off
| Paid annual leave | 28 daysCurrent | National government · 2026 |
| Public holidays | 8 daysCurrent | Research desk · 2026 |
| Maternity leave | 39 weeksDated | OECD Family Database · 2024 |
| Paternity leave | 2 weeksCurrent | National government · 2026 |
| Parental leave | 0 weeksDated | OECD Family Database · 2024 |
Labour market
| Retirement age | 66Dated | OECD Pensions at a Glance · 2024 |
| Unemployment rate | 4.9%Current | OECD · 2026 |
| GDP per capita | $57,602Aging | World Bank Open Data · 2025 |
| Union density | 22%Dated | OECD/AIAS ICTWSS · 2024 |
| Collective bargaining coverage | 40.2%Dated | OECD/AIAS ICTWSS · 2024 |
Rows marked Research desk were filled by our research desk from primary sources where no institutional dataset publishes the figure; each carries the date it was checked and is re-verified on its refresh cycle.
What it costs to hire in United Kingdom
Salary is only part of the bill. On top of gross pay you owe employer social security and statutory contributions. Here's what an example salary of $66,000 a year actually costs you as the employer.
| Gross annual salary | $66,000 |
| Employer contributions≈ 13.7% of gross | + $9,016 |
| Total employment cost | $75,016 |
Your EOR handles the filings
Illustrative, based on the employer social-security rate above. An EOR adds its own service fee on top of this total and runs the income-tax withholding and statutory filings, which are withheld from the employee's pay, not paid by you.
Income tax in United Kingdom
The average effective income-tax rate is about . This is withheld from the employee's salary; an EOR runs the withholding and filing.
Employment-law essentials
The rules an EOR enforces in your contracts, and the ones most likely to trip you up if you tried to hire in United Kingdom on your own.
Working time
Statutory work week48 hours/week
Pay & 13th salary
Minimum wage2,203
Payroll cyclemonthly
13th-month salarynone
Leave
Paid annual leave28 days
Public holidays8 days
Maternity leave39 weeks
Paternity leave2 weeks
Termination
Notice period5.3 weeks
Severance pay5 weeks
Statutory minimums shown. Collective agreements or contracts can be more generous; an EOR applies whichever is correct for the role.
EOR vs. opening your own entity in United Kingdom
Use an EOR when…
You're hiring one to a handful of people in United Kingdom.
You want someone working in weeks, not months.
You'd rather not own local payroll, tax and compliance.
You're testing the market before committing.
Open your own entity when…
You're scaling to a large local team long-term.
Per-employee EOR fees outweigh the cost of an entity.
You need full control of local employment and IP.
Choosing an EOR for United Kingdom
Providers with strong United Kingdom coverage onboard faster and carry less risk. A shortlist to start from:
EORRead Hire with Columbus review Visit website
EORMultiplier
From$459 (Core · billed annually)
EORPayoneer Workforce Management
From$199
EORRemoFirst
From$199
EORRemote
From$699
EORSignature Back Office Solutions
FromRequest a quote
Local players in United Kingdom
EOR and global-employment providers headquartered in United Kingdom:
United Kingdom1EOR
London
FromRequest a quote
United KingdomAgility EOR
London
From$599
United KingdomAlchemy Global Talent Solutions
Essex
FromRequest a quote
United KingdomBrainsource
London
FromRequest a quote
United KingdomEdge Outsourcing
Manchester
FromRequest a quote
United KingdomEnterprise Workforce Solutions
Glasgow
FromRequest a quote
Common questions about hiring in United Kingdom
Common questions about hiring in United Kingdom through an EOR.
Do I need a legal entity to hire someone in United Kingdom? +
No. An Employer of Record (EOR) already has a legal entity in United Kingdom and employs the person on your behalf, so you can hire compliantly without opening your own entity. You manage the day-to-day work; the EOR handles the local contract, payroll, taxes and statutory benefits.
How much does it cost to employ someone in United Kingdom? +
On top of gross salary, employers in United Kingdom contribute roughly 13.7% in social security and statutory costs. An EOR adds its own service fee on top of that total employment cost.
What is the minimum wage in United Kingdom? +
The statutory minimum wage in United Kingdom is 2,203. Pay below this is not permitted, and an EOR will hold contracts to at least this floor.
How hard is it to terminate an employee in United Kingdom? +
Ending employment in United Kingdom generally requires a notice period of around 5.3 weeks and severance of about 5 weeks, subject to the reason for termination and the employee's tenure. An EOR runs the offboarding in line with local law to limit your risk.
How much paid leave do employees get in United Kingdom? +
Employees in United Kingdom are entitled to 28 days of paid annual leave, in addition to public holidays. Statutory leave is one of the entitlements your EOR administers automatically.
About the author
Robbin is the co-founder of EOR Overview, an independent research site for Employer of Record services. He has been in the international hiring space for over a decade.
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