UK employers pay more than the European average for employing workers

The average payroll tax burden for businesses in the UK is 3,000, with the average cost of employing a worker on 30 k being 3,000.

A new study by UHY shows Britain is less than the European average with the cost of keeping a worker in their job being 10 per cent of their salary, less than the EU in which it is 20.7 per cent.

Social security, insurance, and pension contributions are a key reason behind a higher burden in European Union countries.

This comes after a mini-budget earlier in the year which lowered the national insurance rate to 12 per cent and canceled the social care levy in April. Jeremy Hunt confirmed these changes in his budget.

There is a chance that firms won't have to make layoffs due to lower costs for employing workers, which is important because of the tough economic times, high inflation, rising interest rates and recession.

Subarna Banerjee, Chairman of UHY International, said that the recent mini-Budget has been one of the more controversial budgets of recent time, but keeping national insurance low will make it cheaper to retain staff if the UK goes into a recession. That will hopefully keep more people in jobs over the next few years. The payroll tax burden for UK employers is well below the EU and global average due to the cut in NI. Banerjee said that firms could be incentivised not to make redundancies if governments reduce employment taxes. In recent years, many economies have enjoyed record levels of employment, but that is expected to change. As many people as possible are in work, it should be a priority for policy-makers in the coming months. The rise in unemployment will worsen the problems that many countries are facing due to consumer spending dropping sharply.