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Employer of Record in the UK: 2026 Cost and Compliance Guide

How to hire in the UK without a UK company: employer National Insurance and pension costs for 2026/27, the employment law changes now rolling out, and how EOR providers compare.

Photo of Mitchel Sosa

By ยท First published

19 of 20 figures and rules checked against official sources (30 cited).How we verify

Disclosure: We may earn a commission when you use links to some providers on this page. This never changes our data or rankings, and providers can't pay to be included. How we make money

Employer of Record in the UK: the short answer

  • Estimated total: a ยฃ55,000 annual salary costs about ยฃ69,496 a year through an EOR, including an assumed provider fee.
  • EOR fees: 8 providers we compare publish starting prices of US$349โ€“US$699 per employee per month.
  • Key issue: Employment Rights Act changes rolling out 2026โ€“27.

Estimates vary by circumstances. See sources

United Kingdom ยท cost snapshot

Estimate

Gross salary

ยฃ55,000

Employer National Insurance (Class 1)
+ยฃ7,500
Workplace pension (auto-enrolment minimum)
+ยฃ1,321
Apprenticeship Levy
+ยฃ275
EOR fee (12 months)
+ยฃ5,400

Total annual cost

ยฃ69,496

1.26ร— salary

3 of 3 cost lines checked against official sources. EOR fee assumed at ยฃ450 a month. Not included: Compulsory employers' liability insurance (at least ยฃ5 million of cover), priced by insurers.

See the EOR provider shortlist for United Kingdom Run your own numbers
Currency
Pound sterling (GBP)
Employer National Insurance
15% above ยฃ5,000 / year
Auto-enrolment pension
Employer min. 3% of band
Salary payments per year
12
National Living Wage (21+)
ยฃ12.71 / hour
Paid annual leave
5.6 weeks (28 days)Compare annual leave by country
Maximum working week
48 hours (opt-out allowed)
Published EOR fees
US$349โ€“699 / employee / month (starting prices of the providers below)

EOR providers in the UK: published prices

Our shortlist for the UK, with each provider's own published starting price per employee per month. We don't test providers hands-on: get an itemised quote for your hire.

  • Remote

    From US$599 a month ยท checked 4 November 2026

    Owned-entity model and public cost information make UK budgeting straightforward.

    Visit websiteAffiliate link
  • Deel

    From US$599 a month ยท checked 4 November 2026

    Good fit if you also run UK contractors and want both in one platform.

    Visit website
  • Rippling

    Quote-based ยท checked 4 November 2026

    Strong option if you already run US HR and payroll on Rippling and want UK staff in the same system.

    Visit website
  • Multiplier

    From US$459 a month ยท checked 17 October 2026

    Low published starting price (US$459, billed annually). Compare the UK-specific quote.

    Visit website

Need an introduction?

Tell us about your hiring plans in the UK.

Request an introduction

For US companies, the UK has no language barrier, with business centres in London, Manchester, Edinburgh and Bristol. The main employer costs are 15% National Insurance on earnings above ยฃ5,000 and a minimum 3% pension contribution.

Setting up a UK limited company is quick, but running UK payroll (PAYE), pensions and HR compliance takes ongoing work. An Employer of Record (EOR) handles all of it under a UK employment contract while you manage the work.

UK employment law is also changing. The Employment Rights Act 2025 is rolling out reforms in stages, including statutory sick pay from the first day of sickness (since April 2026) and a six-month qualifying period for unfair dismissal claims from 1 January 2027. This guide covers costs, rules, provider comparison and when to set up a UK Ltd. Figures link to official sources. We do not test or use the providers listed; see our methodology.

An Employer of Record is a company with a UK entity that employs staff on behalf of foreign businesses. It issues the UK employment contract, runs payroll through HMRC's PAYE system, deducts income tax and employee National Insurance, pays employer National Insurance, auto-enrols the employee into a workplace pension, and handles statutory sick pay, leave and terminations.

You pay the EOR a monthly invoice for salary, employer costs and its fee. The employee works in your team under your direction.

Because your company directs the work, the employee may in some set-ups count as an agency worker. Under the Agency Workers Regulations, agency workers gain equal treatment on basic pay and conditions after 12 weeks in the same role. Ask your provider how its UK model is structured and which rules it applies.

New to EORs? Our guide to what an Employer of Record is answers the 30 most common questions, from who the legal employer is to what happens if a provider fails.

UK employment cost has three layers: gross salary (12 monthly payments), employer costs (National Insurance, pension and, for large employers, the Apprenticeship Levy) and the EOR fee.

Employer National Insurance is charged at 15% only on earnings above ยฃ5,000 a year, and the minimum pension contribution only applies to a band of earnings. The tables and estimator apply both.

Annual cost at example salaries

Annual costJunior / supportMid-level professionalSenior professionalLead / manager
Gross salary (annual)ยฃ35,000ยฃ55,000ยฃ80,000ยฃ120,000
Paid as 12 payments ofยฃ2,917ยฃ4,583ยฃ6,667ยฃ10,000
Employer National Insurance (Class 1)[9]15% of gross above ยฃ5,000ยฃ4,500ยฃ7,500ยฃ11,250ยฃ17,250
Workplace pension (auto-enrolment minimum)[10]3% of gross, between ยฃ6,240 and ยฃ50,270ยฃ863ยฃ1,321ยฃ1,321ยฃ1,321
Apprenticeship Levy[9]0.5% of grossยฃ175ยฃ275ยฃ400ยฃ600
Total employment costยฃ40,538ยฃ64,096ยฃ92,971ยฃ139,171
EOR feeยฃ450 / month: the US$599 starting price published by Deel, Remote, Globalization Partners and Atlas HXM, converted. Pricing trackerยฃ5,400ยฃ5,400ยฃ5,400ยฃ5,400
Total annual cost via EORยฃ45,938ยฃ69,496ยฃ98,371ยฃ144,571
Multiple of gross salary1.31ร—1.26ร—1.23ร—1.20ร—
Estimates for 2026 using a simplified model. Excludes optional benefits, deposits and one-off costs. Figures marked โ€œUnverifiedโ€ are estimates โ€” see โ€œWhy unverifiedโ€ under each one for the specific reason, whether that's a pending official rate or a figure that varies by plan or provider. Not included: Compulsory employers' liability insurance (at least ยฃ5 million of cover), priced by insurers.

What these figures include and exclude

  • Employee National Insurance and income tax are deducted from gross pay under PAYE and are not employer costs.
  • The pension figure is the legal minimum on the qualifying earnings band. Employers can contribute more, or on full salary.
  • The Employment Allowance reduces an eligible employer's NI bill; it is claimed by the employer, which in an EOR arrangement is the provider.
  • Statutory sick pay, statutory maternity pay and similar payments are partly or fully funded by the employer.

Estimate your own cost

Enter a salary to see the estimated annual cost, including mandatory employer contributions and an EOR fee. Change the fee to match the quotes you receive. For worked examples at four salary levels, see cost to hire an employee in the UK.

United Kingdom employment cost estimator

Gross salary
GBP

= ยฃ4,583 ร— 12 payments

GBP

Assumes ยฃ450 per month: a common published starting price of US$599, converted at the US Treasury rate of ยฃ0.752 per US dollar (30 September 2026). Your quote may differ by provider, billing term and volume.

First-year extrasDeposit, setup, FX margin

Ask each provider for these figures. They don't change the recurring annual cost above, only the first-year view.

GBP
%
GBP
months
Optional benefits

Estimated total annual cost

ยฃ69,496

โ‰ˆ ยฃ5,791 per month on average ยท 1.26ร— gross salary

Gross salary
ยฃ55,000
Employer National Insurance (Class 1)15%
ยฃ7,500
Workplace pension (auto-enrolment minimum)3%
ยฃ1,321
Apprenticeship Levy0.5%
ยฃ275
Employer costs subtotal
ยฃ9,096 (16.5%)
EOR fee (12 months)
ยฃ5,400
Total
ยฃ69,496

First year

First-year cost
ยฃ69,496
Refundable deposit1 mo
ยฃ5,341
Cash needed in year one
ยฃ74,837

Estimate only. Percentage costs are applied to total annual gross pay, up to any contribution ceiling. Real payroll uses specific bases, and collective agreements may add costs. Employee social security and income tax are deducted from gross pay and are not employer costs. Not included: Compulsory employers' liability insurance (at least ยฃ5 million of cover), priced by insurers.

Several reforms under the Employment Rights Act 2025 are being phased in during 2026 and 2027. Check the current position before you make an offer.

Written statement

Every employee and worker must receive a written statement of particulars no later than their first day, covering pay, hours, holiday, sick pay, pensions, notice, job title, any probationary period and required training.[21]

Employment Rights Act 1996, section 1.

Probation

No statutory length. Any probationary period, its conditions and its duration must be stated in the written statement.[21]

Employment Rights Act 1996, section 1(4)(ga) and (6).

Working time

Working time, including overtime, may not exceed an average of 48 hours a week, normally averaged over 17 weeks, unless the worker agrees in writing to opt out. The worker can end an opt-out with at least seven days' notice (or the notice in the agreement, up to three months).[26]

Working Time Regulations 1998, regulations 4 and 5.

Annual leave

5.6 weeks of paid leave a year (4 weeks plus 1.6 weeks), capped at 28 days, which is 28 days for a five-day week. Employers can count bank holidays towards it. Leave can't be replaced by payment except on termination.[26]

Working Time Regulations 1998, regulations 13 and 13A (workers on irregular hours or part-year contracts have their own accrual rules).

Sick pay

Statutory Sick Pay is paid by the employer from the first day of sickness (since 6 April 2026), at ยฃ123.25 a week or 80% of average weekly earnings if lower in 2026/27. Employers can't recover SSP from HMRC.[9]

Employment Rights Act 2025, section 10, in force 6 April 2026 (S.I. 2026/373). Employers can offer enhanced company sick pay on top.

Family leave

Up to 52 weeks of maternity leave (26 weeks ordinary plus 26 weeks additional). Statutory Maternity Pay runs for up to 39 weeks: 90% of average weekly earnings for 6 weeks, then ยฃ194.32 a week or 90% if lower (2026/27).[27]

Employers can usually recover 92% of statutory maternity, paternity, adoption and shared parental pay from HMRC, or 109% for small employers (Class 1 NI of ยฃ45,000 or less in the previous tax year).

Notice periods

After one month's service, the employer must give at least one week's notice; from two years, one week per complete year of service, up to 12 weeks after 12 years. The employee must give at least one week. Contracts can set longer periods.[22]

Employment Rights Act 1996, section 86. Either side can waive notice or accept pay in lieu.

Unfair dismissal

Employees currently need two years' continuous service to claim ordinary unfair dismissal. The Employment Rights Act 2025 cuts this to six months and removes the cap on the compensatory award from 1 January 2027, including where notice is given before that date but employment ends on or after it.[23]

Employment Rights Act 1996, section 108; Employment Rights Act 2025, section 25; S.I. 2026/559. Many automatically unfair reasons need no qualifying period. Statutory redundancy pay still requires two years' service (ERA 1996, section 155).

Right to work

Employers must check that a person is allowed to work in the UK before employing them, online with a share code or from original documents. Employing someone without the right to work can lead to a civil penalty; a correct check gives a defence.[30]

Immigration, Asylum and Nationality Act 2006, section 15.

How the UK compares

  • From 1 January 2027

    UK unfair dismissal qualifying period cut to six months

    Probation reviews matter more: decide on hires before they reach six months' service, and expect higher potential awards. Redundancy pay still needs two years' service.

  • Effective 30 October 2026

    UK employers must take all reasonable steps to prevent sexual harassment

    Check that your EOR and your own managers have a harassment policy, training and a reporting route that cover third parties.

  • Effective 6 April 2026

    UK Statutory Sick Pay paid from the first day of sickness

    Short absences now cost SSP from day one; budget for it and check whether your EOR's contract adds enhanced sick pay.

See every country in the employment law changes tracker.

These EOR providers publish information about employing in the UK. Prices are their own published starting rates in USD. Quote-only providers are marked.

In the UK, ask whether the provider uses its own UK entity, which pension scheme it auto-enrols employees into and at what contribution rate, and whether the Apprenticeship Levy is passed through.

  • DeelFrom US$599
    Delivery model:
    Confirm with provider
    Notes
    Broad product suite; add-ons priced separately.
    Visit Deel
  • RemoteFrom US$599
    Delivery model:
    Owned entities (provider's stated model)
    Notes
    Published price per employee per month (checked 15 Oct 2026).
    Visit Remote
  • OysterFrom US$699
    Delivery model:
    Confirm with provider
    Notes
    Published EOR price per employee per month (checked 15 Oct 2026).
    Visit Oyster
  • MultiplierFrom US$459
    Delivery model:
    Confirm with provider
    Notes
    Low published starting price (Core plan, billed annually) (checked 15 Oct 2026).
    Visit Multiplier
  • RipplingQuote-based
    Delivery model:
    Confirm with provider
    Notes
    Strong fit if you also run US payroll on Rippling.
    Visit Rippling
  • Delivery model:
    Confirm with provider
    Notes
    Enterprise focus; published starting price.
    Visit Globalization Partners (G-P)
  • Papaya GlobalFrom US$499
    Delivery model:
    Confirm with provider
    Notes
    Useful if you later run UK payroll through your own Ltd.
    Visit Papaya Global
  • Atlas HXMFrom US$599
    Delivery model:
    Own legal entities (provider's stated model)
    Notes
    Platform fee from US$599 per employee per month plus a country Local Employer Services rate, which is not published (checked 15 Oct 2026).
    Visit Atlas HXM
  • RemotePassFrom US$349
    Delivery model:
    EOR available per its country guide; confirm entity or partner
    Notes
    Published EOR price from US$349 per employee per month, including tax (checked 15 Oct 2026). Its country guide says redundancy isn't possible under the EOR setup.
    Visit RemotePass

Compare providers for the UK

For the UK-specific selection criteria and a shortlist, see best EOR providers in the UK. For each provider's products and pricing model, see the provider directory.

A UK private limited company (Ltd) is one of the fastest and cheapest entities in the world to set up: online registration with Companies House takes about a day and costs ยฃ100, and there is no minimum share capital (full cost breakdown). You then register as an employer with HMRC for PAYE and choose a pension provider.

Ongoing costs are modest compared with continental Europe: an accountant, payroll software or bureau, annual accounts and corporation tax returns (25% main rate, 19% for small profits), a confirmation statement, and HR and employment-law support.

FactorEmployer of RecordUK Ltd
Time to first hireDepends on the provider's onboarding; no entity to set upAfter set-up (incorporation, PAYE registration, bank, pension)
Upfront costAny deposit the provider requiresLow: registration fee and advisory
Ongoing fixed costNone; scales per employeeAccountant, payroll, filings, HR support
Legal employerThe EORYour UK company
Can invoice UK customersNoYes
Corporate tax exposureLower, but permanent establishment risk depends on employee activitiesUK corporation tax on local profits
ExitTerminate employment; end service agreementTerminations plus strike-off or liquidation

An EOR usually fits whenโ€ฆ

  • You're making one or two UK hires and want them started within days
  • You're testing the UK market before committing
  • You don't want to manage PAYE, pensions and UK HR compliance

A UK Ltd usually fits whenโ€ฆ

  • You expect a sustained UK team of roughly two or three or more
  • You'll sell to UK customers or sign UK contracts
  • You want your own pension, benefits and share-scheme arrangements

What a team costs through an EOR

Annual cost of a team of mid-level professionals on ยฃ55,000 each, with statutory employer costs from our cost model and an EOR fee of ยฃ450 per employee per month, using the estimate in this country's cost model. Providers may price differently by country and team size, so ask for a quote. US-dollar amounts use the US Treasury rate of 0.752 GBP per US$1 (30 September 2026).

Team sizeSalaries and employer costsEOR feesTotal through an EOR
5 employeesยฃ320,480ยฃ27,000ยฃ347,480 (about US$462,100)
25 employeesยฃ1,602,397ยฃ135,000ยฃ1,737,397 (about US$2,310,400)
50 employeesยฃ3,204,795ยฃ270,000ยฃ3,474,795 (about US$4,620,700)

This illustration uses the same salaries and employer costs for both options; actual charges and benefits can differ by employing entity. The estimated EOR fees are ยฃ27,000 a year for 5 employees, ยฃ135,000 a year for 25 employees and ยฃ270,000 a year for 50 employees. Compare them with your entity's setup and running costs, including payroll, over your chosen period, and allow for any differences in employer costs.

Work out your own break-even with the EOR vs entity calculator, or see the step-by-step method in EOR vs local entity: a break-even framework.

  1. 1

    Define the role and salaryDay 0

    Agree an annual gross salary, notice period, holiday entitlement and any bonus or equity terms.

  2. 2

    Compare itemised quotes1โ€“3 days

    Request UK quotes covering the fee, deposit, pension contribution level, benefits and offboarding. Use the estimator to sanity-check totals.

  3. 3

    Sign the service agreement

    Review liability for termination costs, IP assignment, and data protection (UK GDPR) terms.

  4. 4

    Contract and right-to-work check2โ€“5 days

    The EOR issues a UK contract and written statement, and completes the right-to-work check before day one.

  5. 5

    Payroll and pension set-up

    The EOR adds the employee to PAYE payroll (with their National Insurance number and tax code) and auto-enrols them into its pension scheme.

  6. 6

    Ongoing administrationMonthly

    Monthly payroll, RTI submissions to HMRC, pension contributions, holiday and sickness records.

How fast can I hire in the UK through an EOR?
How long it takes depends on the provider and the paperwork. Deel says a hire in the UK could start in as little as 7 days. Remote says its onboarding starts once the employee has submitted all their information, that a right-to-work check adds 3 days for non-nationals, and that its payroll cut-off (the 10th of the month unless stated otherwise) can push back the first day of employment. If the person needs a work permit, that comes first: see can an EOR sponsor a visa?. Provider statements checked 27 October 2026.
When is payroll paid in the UK?
The law doesn't fix a payday, but every employee must get a payslip on or before payday showing pay before and after deductions, and the employer must report each payment to HMRC through a Full Payment Submission on or before that payday. Remote, for example, pays monthly, on or before the last working day.
How much does it cost to employ someone in the UK through an EOR?
Budget gross salary plus about 17% for employer National Insurance, minimum pension and the Apprenticeship Levy, plus the EOR fee. For a ยฃ55,000 salary, that is roughly ยฃ69,500 a year in total, including a ยฃ450 monthly fee. Use the cost estimator for your own figures.
What is the employer National Insurance rate in 2026/27?
15% on each employee's earnings above the secondary threshold of ยฃ5,000 a year. There is no upper limit for employer contributions.
Is a pension mandatory in the UK?
Yes. Employers must auto-enrol eligible workers into a workplace pension and contribute at least 3% of qualifying earnings (8% total with the employee's share).
Is it legal to use an EOR in the UK?
Yes. Depending on the structure, the employee may be treated as an agency worker, which brings equal-treatment rights after 12 weeks. Ask your provider how its model works.
Should I hire a UK contractor instead?
Only for genuinely independent work. If the person works like an employee, IR35 rules can treat them as one for tax purposes. See EOR vs contractors.
When should I set up a UK limited company instead?
A UK Ltd is cheap to run, so it can pay off from two or three employees, especially if you sell to UK customers. See EOR vs local entity.

Rates and rules on this page are based on the following official sources. Numbers in brackets in the tables above link to these entries.

  1. 1
    Payslips: employee rights

    GOV.UK

    Payslips must be provided on or before payday, with the required details.

  2. 2
    Running payroll: reporting to HMRC (FPS)

    GOV.UK

    Send the Full Payment Submission on or before employees' payday.

  3. 3
    Deel: hiring employees in the UK

    Deel

    Deel's stated onboarding time, checked 27 October 2026.

  4. 4
    Remote Country Explorer: the UK

    Remote

    Remote's onboarding conditions, payroll cut-off and payroll cycle, checked 27 October 2026.

  5. 5
    Companies House fees

    GOV.UK

    Confirmation statement fee: ยฃ50 online, ยฃ110 on paper.

  6. 6
    Companies Act 2006, ss. 382 and 477

    legislation.gov.uk

    Small company thresholds of ยฃ15 million turnover, ยฃ7.5 million balance sheet and 50 employees; audit exemption.

  7. 7
    Audit exemption for private limited companies

    GOV.UK

    Audit exemption thresholds and exceptions, including group and subsidiary conditions.

  8. 8
    Workplace pensions: what you, your employer and the government pay

    GOV.UK

    Minimum employer contribution of 3% (8% total).

  9. 9
    Rates and thresholds for employers 2026 to 2027

    HM Revenue & Customs (GOV.UK)

    National Insurance rates and thresholds, pension and statutory payment rates.

  10. 10
    Automatic enrolment earnings thresholds 2026โ€“27

    The Pensions Regulator

    Qualifying earnings band (ยฃ6,240โ€“ยฃ50,270) and the ยฃ10,000 trigger.

  11. 11
    Pay Apprenticeship Levy

    GOV.UK

    Who pays the 0.5% levy and how it is calculated.

  12. 12
    Employers' liability insurance

    GOV.UK

    Employers must get employers' liability insurance from an authorised insurer, covering at least ยฃ5 million; fines of ยฃ2,500 for each day without it.

  13. 13
    Employment Allowance

    GOV.UK

    Up to ยฃ10,500 off employer Class 1 NI a year; the ยฃ100,000 liability limit no longer applies from April 2025; single-director companies excluded.

  14. 14
    Redundancy: your rights

    GOV.UK

    Statutory redundancy pay: half, one or one and a half weeks' pay per year by age, service capped at 20 years, weekly pay capped at ยฃ751 (maximum ยฃ22,530) from 6 April 2026.

  15. 15
    National Minimum Wage and National Living Wage rates

    GOV.UK

    Current hourly minimum wage rates by age.

  16. 16
    Employment contracts and written statements

    GOV.UK

    What must be in a written statement of employment particulars.

  17. 17
    Maximum weekly working hours

    GOV.UK

    The 48-hour week and opt-out rules.

  18. 18
    Holiday entitlement

    GOV.UK

    Statutory 5.6 weeks of paid holiday.

  19. 19
    Statutory Sick Pay: employer guide

    GOV.UK

    SSP rates and rules for employers.

  20. 20
    Dismissing staff and notice periods

    GOV.UK

    Fair dismissal, notice and redundancy pay.

  21. 21
    Employment Rights Act 1996, section 1

    legislation.gov.uk

    Statement of initial employment particulars, including any probationary period.

  22. 22
    Employment Rights Act 1996, section 86

    legislation.gov.uk

    Minimum periods of notice.

  23. 23
    Employment Rights Act 2025, section 25

    legislation.gov.uk

    Unfair dismissal qualifying period cut to six months; in force 1 January 2027 under S.I. 2026/559.

  24. 24
    Employment Rights Act 2025 (Commencement No. 6) Regulations 2026

    legislation.gov.uk

    Sexual harassment prevention duties in force 30 October 2026.

  25. 25
    Employment Rights Act 2025 (Commencement No. 4) Regulations 2026

    legislation.gov.uk

    Brings section 25 into force on 1 January 2027, with transitional provisions.

  26. 26
    Working Time Regulations 1998

    legislation.gov.uk

    48-hour week and opt-out (regs 4โ€“5); annual leave (regs 13โ€“13A).

  27. 27
    Statutory Maternity Pay and Leave: employer guide

    GOV.UK

    52 weeks' leave, 39 weeks' SMP and recovery rates.

  28. 28
    Agency Workers Regulations 2010, regulation 7

    legislation.gov.uk

    12-week qualifying period for equal treatment.

  29. 29
    Immigration, Asylum and Nationality Act 2006, section 15

    legislation.gov.uk

    Civil penalty for employing someone without the right to work.

  30. 30
    Check a job applicant's right to work

    GOV.UK

    Mandatory right-to-work checks.

The UK is one of the cheapest major markets to employ in. Total cost through an EOR runs at roughly 1.20โ€“1.31ร— gross salary at our example salaries, and the fee is a smaller share at senior salaries.

Because a UK Ltd is quick and inexpensive to set up, an EOR makes the most sense for first hires or market tests. Plan to compare against your own entity once you have two or three UK employees.

Watch the Employment Rights Act timeline, which changes sick pay and dismissal protection through 2026โ€“2027, and see our Ireland guide if you're weighing an EU base nearby.

Ready to compare providers?

Review published pricing and fit signals side by side, then request itemised United Kingdom quotes from two or three providers.

Government fees on World Cost Ledger

Our sister site compares official government fees by country, sourced the same way as this page.