Bonuses can be contractual (entitled under the contract) or discretionary. Contractual bonuses form part of pay and can affect holiday pay and redundancy. Discretionary bonuses should be clearly stated as non-contractual. Having a written policy helps avoid disputes. The EOR will process bonus payments through payroll and apply tax and NICs as required.
Rates and thresholds change each tax year. Check GOV.UK or your adviser for the current year.
Key rates (2025/26 & 2026/27)
| Rate | 2025/26 | 2026/27 |
|---|---|---|
| NLW (21+) | £12.21/hr | £12.71/hr |
| Employer NICs | 15% above £5k | 15% above £5k |
| SSP (weekly) | £118.75 | £123.25 or 80% AWE |
| SMP/SPP etc (weekly) | £187.18 or 90% AWE | £194.32 or 90% AWE |
| Redundancy cap (week) | £719 | See GOV.UK |
| Pension trigger | £10k; band £6,240–£50,270 | Unchanged |
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