Employment costs refer to the total expenditure incurred by an organization in employing personnel. This includes salaries, wages, bonuses, incentive payments, employer's National Insurance contributions, and employer's pension scheme contributions.
National Insurance Contributions (NIC) are payments made by employees and employers in the UK primarily to qualify for certain benefits and state pensions.
A Progressive Tax is a tax mechanism where the tax rate increases as the tax base increases. This kind of tax structure aims to distribute the tax burden more equitably based on the taxpayer's ability to pay.
The State Second Pension (SSP), also known as S2P, was a former UK government scheme intended to provide an additional pension on top of the basic state pension. It was introduced in 2002 to replace the State Earnings Related Pension (SERPS) and was funded through National Insurance contributions. The scheme was phased out in April 2016 and replaced by the New State Pension, a single-tier pension system.
