Employee hire
Set written terms, PAYE, NIC category, pension assessment, holiday, sick pay, and benefits before payroll.
UK EOR Guide
Hiring in the UK: PAYE, National Insurance, and employment terms
For the 2026β27 tax year, the standard employer National Insurance rate is 15% above the applicable secondary threshold. Payroll also needs PAYE, pension, holiday, and statutory-payment handling.
Verified snapshot
What changes the hiring plan in United Kingdom
Employer NIC15% standard secondary rate for 2026β27 above the applicable threshold
Paid holiday5.6 weeks for most workers, capped at 28 days for a six-day worker
PayrollPAYE deductions and Real Time Information reporting
Work authorizationRight-to-work and visa route checked before employment
Figures and rules are planning inputs, not a quote or legal opinion. Employee category, location, compensation, immigration status, and later rule changes can alter the result.
Hiring decision
Start with worker status and payroll category
Employee, worker, and self-employed status have different consequences. Contract labels do not decide the legal result.
Variable or irregular hours
Use the correct holiday-accrual and holiday-pay rules rather than copying a fixed-hours calculation.
Sponsored worker
Confirm sponsor and visa feasibility before making an unconditional start-date commitment.
Country-specific requirements
The details that deserve separate review
Budget employer NIC using the correct tax year
HMRC's 2026β27 employer table gives a standard secondary Class 1 rate of 15% above the secondary threshold, with category-specific reliefs. Apply the employee's category and current threshold rather than multiplying the full salary by 15%.
Benefits, pension contributions, apprenticeship levy exposure, and statutory payments may also affect employer cost.
Primary source: HMRC β rates and thresholds for employers 2026β27
Holiday is a payroll calculation, not just a policy
Most workers are entitled to 5.6 weeks of paid holiday. Accrual and pay calculations differ for regular, irregular-hours, and part-year workers. Untaken statutory leave is generally paid in lieu only on termination.
Primary source: GOV.UK β holiday entitlement
Termination starts with process and status
Notice, dismissal reason, procedural fairness, protected characteristics, redundancy, accrued holiday, and final payroll all require review. A payment in lieu clause or garden-leave arrangement should be checked against the contract and the facts before it is used.
Common mistakes
What to catch before onboarding
These issues often change cost, timing, or the correct employing model.
Applying an old 13.8% employer NIC rate
Treating bank holidays as additional to 5.6 weeks without checking the contract
Assuming a contractor label decides employment status
Starting work before right-to-work and sponsorship questions are resolved
Primary sources
Official references used for this guide
Open the current official guidance before making a final employment, payroll, tax, or immigration decision.
- HMRC β rates and thresholds for employers 2026β27
- GOV.UK β holiday entitlement
- GOV.UK β PAYE for employers
- GOV.UK β work visas
Reference links checked: 15 September 2026. Farlinko content is general operational information and does not replace case-specific legal, tax, or immigration advice.
Plan the hire
Review the United Kingdom case before the offer goes out.
Share the work location, role, compensation, worker status, target date, and any immigration dependency. We will identify the employing path and the items that still need local confirmation.