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Employee benefits are non-wage compensations provided by employers or the State for employee well-being.In the UK, employee benefits fall into three categories:

• Mandatory Benefits: Legally required, like workplace pensions, holidays, and sick leave.
• Supplementary Benefits: Extras such as medical insurance, life assurance, and employee assistance programmes.
• Employee Perks: Added incentives like remote work stipends, gym memberships, company cars, etc. 

Read on for a complete breakdown of UK employee benefits and why they are essential. We’ll highlight 20+ employee benefits examples to help you build a thriving workplace.

Who qualifies for employee benefits in the UK?

Employee benefits are generally provided to those classified as “workers” in the United Kingdom.UK law defines a “worker” as someone who has entered into a contract (express or implied) to perform work personally. This includes:

• Agency employees (temporary or contract staff recruited through staffing agencies)
• Employees working on zero-hours contracts (those with irregular or on-demand working patterns).
• Temporary workers (including those engaged for short periods or on a seasonal basis).

Workers are entitled to key statutory benefits - such as holiday pay, sick pay, and a workplace pension - regardless of whether they work full-time or part‑time.Independent contractors, freelancers, and self‑employed individuals typically fall outside this “worker” definition. That means they aren’t automatically entitled to these benefits.

Mandatory employee benefits in the UK

UK law requires employers to provide mandatory (statutory) benefits to all eligible employees. These benefits include:

• Workplace pension
• Paid annual leave
• Paid maternity, paternity and adoption leave
• Statutory Sick Pay (SSP)

Let’s look at each one in detail.

1. Workplace pension

Under theUK’s auto-enrolment rules, employers must enrol eligible employees into a workplace pension scheme and contribute to their retirement savings.

• Employers contribute at least 3% of each eligible employee’s salary.
• Employees contribute at least 5%, bringing the total minimum contribution to 8%.

A2024 study by Kota and Raviofound that 46% of UK companies go beyond the 3% auto-enrolment minimum, offering extra pension contributions to support their workforce. This shows a growing trend - employers are stepping up their benefits game to attract and retain top talent.

2. Paid Annual Leave

All UK employees are entitled to legally guaranteed paid leave (holiday pay or statutory leave entitlement) as follows:

• Employees working at least five days a week can receive up to 28 days (5.6 weeks) of paid annual leave.
• Part-time workers receive paid leave in a pro-rated manner. For example, if your employee works four days a week, they are entitled to at least 22.4 days (4 x 5.6) of paid leave.
• Shift workers or those with irregular/flexible hours accrue paid time off based on their working hour calculations.

3. Paid Maternity, Paternity and Adoption Leave

As an employer in the United Kingdom, you must offer paid parental leave to your employees in the form of paternity, maternity, and adoption leave.

• Female employees on maternity or adoptive leave can take up to 52 weeks, with 39 weeks paid. 
• Employees can take two weeks of extended leave in cases such as shared parental leave, adoption or surrogacy arrangements, or health complications involving the mother or child.

3. Statutory Sick Pay

In 2025, your employees are entitled to a minimum Statutory Sick Pay (SSP) of £116.75 per week for up to 28 weeks. Sick pay begins on the fourth day of your employee’s absence, meaning SSP covers all days off due to illness after the first three.If your company has its own sick pay scheme, you can offer more than the statutory minimum, but never less. Such schemes, also known as contractual or occupational sick pay, must be clearly outlined in your employee’s contract.

Supplementary employee benefits in the UK

Employers often offer additional, non-statutory benefits - beyond the mandatory ones - to enhance the overall employee benefits package.Here are some valuable supplementary employee benefits in the United Kingdom:

• Private Medical Insurance
• Life Assurance
• Income Protection
• Critical Illness Cover (CIC)
• Employee Assistance Programme
• Employer-Financed Retirement Benefit Scheme

Offer benefits in the UK to support employee well-being

Whether you're a large enterprise, small business, or startup, offering workplace benefits in the UK is about more than just complying with legislation. Companies often offer employee benefits beyond the statutory minimum - from paid leave and healthcare coverage to perks like remote work stipends.These benefits increase employee engagement, boost retention rates, and help attract top talent. If you’re a UK employer looking to offer your team flexible and affordable retirement and health insurance plans,join Stremax. You can set up, manage, and scale your core benefits effortlessly - all in one delightfully simple platform.