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Social security in the UK.

Learn about social security in the UK with Horizons’ up-to-date guide.

Horizons is where real, local hiring expertise meets world-class customer service. Quickly and compliantly hire employees in more than 150 countries worldwide, without the need to open a local entity.

Social security in the UK – Overview

The United Kingdom has a comprehensive social security system covering health and disability, unemployment, retirement and other forms of assistance. 

Social security is funded partly out of general taxation and partly out of mandatory contributions, such as National Insurance. 

What does the social security system in the UK cover?

The social security system in the United Kingdom covers a wide range of benefits, including retirement pensions, disability benefits, and jobseeker’s allowance.  It also offers free healthcare and education for all citizens. In addition, the system provides financial assistance for low-income families and individuals. The social security system in the United Kingdom is one of the most comprehensive in the world.

What are the mandatory contributions for employees to social security in the UK?

Social security contributions in the United Kingdom are based on salary. The employee pays approximately 12% of their monthly salary between £ 737 and 4,189, and 2% of their monthly salary above £ 4,189.

What are the mandatory contributions for employers to social security in the UK?

Employer mandatory social security contributions in the UK are approximately 13.8%.

How do mandatory contributions compare to the surrounding countries?

Mandatory contributions for employers in the United Kingdom are fairly low in comparison to surrounding countries. For example, mandatory contributions in Spain are approximately 32.1% of the employee’s salary, and in France it is 42%.

Frequently asked questions (FAQ):

Employers need to contribute approximately 13.8% of an employees salary to social security in the United Kingdom. This includes National Insurance and the Health and Social Care Levy

Social security in the United Kingdom covers employees for a wide range of situations, including healthcare, dental care,  unemployment benefits, state pension, and disability benefits.

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