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: 

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:

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. 

But what about freelancers and contractors?

Independent contractors, freelancers, and self‑employed individuals typically fall outside this “worker” definition. That means they aren’t automatically entitled to these benefits.

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

, employers must enrol eligible employees into a workplace pension scheme and contribute to their retirement savings.

 found 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.

Effortlessly Manage Workplace Pensions With Kota

is a modern digital benefits platform that helps businesses set up and manage 

, a trusted pension provider in the United Kingdom, to offer employees extensive pension coverage and retirement benefits. 

Make workplace pensions hassle-free with Kota. 

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

Public and bank holidays aren’t automatically included in this mandatory benefit. As an employer, you can choose whether to count them as part of the 28 days of annual leave or offer them separately.  

For example, you could offer extra paid holidays beyond the legal minimum (often after one year of service) and allow staff to “buy” additional leave through 

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. 

This leave is split into two parts (the leave structure is the same for adoptive leave):

In 2025, eligible employees on maternity or adoption leave receive:

Employed fathers or partners (including same-sex partners) can take either one or two weeks of Statutory Paternity Leave. 

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.

In 2025, the paternity allowance is £184.03 per week or 90% of the employee’s average earnings (whichever is lower).

You must report statutory parental leave payments (paternity, maternity, and adoption pay) to HM Revenue & Customs (HMRC). You must also maintain accurate records of leave, pay, and any adjustments to comply with UK labour laws.

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:

Let’s discuss these employee benefits examples in detail:

The National Health Service (NHS) offers free healthcare to UK residents. 

, including long waiting times and strain on the system. 

That’s why many employers provide private medical insurance (or private health insurance) schemes to their UK employees. 

Private medical insurance ensures health benefits, such as:

It provides a range of different services, which cover:

Private health insurance is a flexible benefit that allows employers to tailor coverage levels to suit individual needs.

Companies can partner with health insurance providers to offer a range of plans as part of a robust employee benefits package. You can bear the plan's full cost or share the premium with your employees.

Moreover, your employees can decide the coverage level they need, such as choosing a basic plan to save money.

Offer Comprehensive Employee Health Insurance with Kota

, a leading UK health insurer, ensuring top-quality care for your employees.

 and roll out more engaging health cover with less ongoing admin.  

Life assurance as an employee benefit refers to Death-in-Service, a type of group term assurance. It provides a lump-sum payment to your employee’s family or dependents if they pass away while employed by your company. 

As an employer, you set the level of cover. 

It’s usually a multiple of the employee’s annual salary — often up to four times. You can also choose to offer different cover levels based on factors like job role or age. 

3. Income Protection (Long-Term Disability)

Income protection provides a monthly income to your UK employees who are unable to work due to illness or disability, whether temporary or permanent. 

It’s also known as Group Income Protection (GIP) or disability insurance.

Typically, GIP replaces about 50–60% of your employee’s salary, with your contributions being roughly 1–1.5% of the payroll to fund the plan.

Here’s how this employee benefit works:

Critical Illness Cover (CIC) provides a lump-sum payment to your employees diagnosed with serious illnesses, such as:

Dental insurance is an attractive benefit that covers both routine and emergency dental treatments.

In the UK, there are two main types of dental plans:

Employers can offer dental insurance as a standalone benefit or integrate it into a broader private medical insurance plan.

Health cash plans offer an affordable way for employees to cover routine medical and dental expenses.

How does a health cash plan differ from health insurance?

Health insurance covers treatments for diseases that occur after enrollment, while a health cash plan pays for ongoing, routine treatments. 

Under health cash plans, your employees pay a fixed monthly fee (say, £10) and can receive reimbursements up to set limits - such as £200 for dental care, £100 for physiotherapy, and £100 for optical expenses.

Employee Benefits UK: What to Offer in 2025 (20+ Examples)

We’re excited to announce our latest embedded benefits partnership with 

an exciting new global workforce management platform!

Kota Embed gives organisations using the Helios platform a faster, simpler way to set up and manage health benefits from providers like Freedom Health for their teams - helping them stay compliant, locally competitive, and ready to grow!

Companies Are Now Borderless, but Benefits Infrastructure Hasn’t Kept Up

Thanks to Helios, employment and payroll is about to  become significantly easier for globally distributed companies. Our partnership is ensuring that employees’ benefits are at the forefront of this offering, and are not lagging behind.

Setting up and managing health insurance in multiple countries often means juggling local vendors, navigating regulatory nuances between countries, and wrangling spreadsheets. It’s expensive, time-consuming, and difficult to scale.

By combining Kota’s international benefits infrastructure with Helios’ centralised approach to workforce operations, this integration simplifies one of the most fragmented, compliance-heavy parts of running a global business. 

I sat down with Rick to dive into our shared vision for the future of work and the tools needed to bring it to life - you can check out the full interview 

With this integration, Helios customers can now:

All within the same platform they already use to manage global employment.

in mind - HR, People, and Finance professionals who are tasked with supporting distributed teams while keeping costs, compliance, and complexity in check. It removes the need to manage local brokers, chase down paperwork, or worry about whether coverage is up to standard. With Kota and Helios, benefits just work - alongside everything else.

When expanding into new markets, you’ve got enough to figure out. Now, benefits are one less thing on that list.

Helios Launches Local Health Benefits powered by Kota Embed 

Looking to attract and retain global talent? 

Offering tailored benefits to your employees is the golden ticket. 

Global employee benefits are non-wage incentives that acknowledge and address the diverse needs of an international workforce. Some examples include paid time off, company health insurance, occupational pensions, and remote work stipends. 

Let’s explore various global employee benefits you can offer and how to manage them.

Why Offer Global Employee Benefits to Your Team?

Metlife's 2024 Employee Benefit Trends Study

, 73% of employees would be more likely to stay with their current employer if they had access to a broader range of benefits.

Offering a comprehensive benefits package to your employees wherever they are comes with several advantages, such as: 

Now that we've covered the why, let's discover what to include in your global employee benefits package.

What Are the Different Types of Global Employee Benefits You Can Offer?

Any global employee benefits package will typically be a mix of: 

A. Statutory Benefits (Mandatory Benefits)

Statutory benefits are legally required benefits that you must provide, with specific requirements varying by country based on labour laws.

Usually, statutory benefits include essentials like healthcare, pensions, paid time off, and unemployment insurance.

Some benefits, like a state pension scheme, could be part of the country’s social security program. 

Mandatory benefits are typically funded through employee, employer, and state contributions.

As an employer, you may also be responsible for processing contributions, submitting them to the concerned authority, maintaining accurate records, etc.

Let’s look at some common statutory benefits globally:

Supplementary benefits are optional benefits you can offer your employees — going beyond the legally mandated ones.

To enhance your workers' overall compensation package and keep them satisfied and motivated. 

Some popular supplementary benefits globally include:

Fringe benefits are additional non-cash perks aimed at attracting and retaining talent. 

Unlike supplementary benefits, which enhance core benefits like health or retirement plans, fringe benefits offer non-essential luxuries to improve your employees' experience and workplace satisfaction.

Examples of Employee Benefits Offered Across Different Countries

Here’s what the employee benefits landscape looks like for different countries:

Here are additional resources for employers in the UK:

While global benefits offer several advantages, managing them can be challenging.

What Are the Challenges Employers Face While Managing Global Benefits?

Managing global employee benefits can present unique challenges to you and your HR teams:

You can overcome these challenges with the right global benefits management solution.

Effortless Global Employee Benefits Management With Kota

 is a cutting-edge software solution that simplifies global benefits management.

Partnering directly with trusted benefits providers across 

, Kota delivers hand-picked, cost-effective benefits for your employees.

Moreover, our benefits plans comply with your employee’s local employment laws. 

What Employee Benefits Does Kota Support?

Our core offerings are the essentials every global benefits package needs:

Here are some more reasons you’ll love Kota:

How Can Employers Develop a Solid Global Employee Benefits Strategy?

Here's a roadmap to build a winning global employee benefits strategy for your team:

4 Key Considerations When Developing a Global Benefits Strategy

Global Employee Benefits: How to Attract & Retain Talent in 2025

An employer benefits package includes benefits and perks offered beyond salary, such as health insurance, paid leave, and pensions.

And how can you design one that works for both your employees and your business?

Read on to explore their importance, the key benefits to include, and how to build an employer benefits package that fits your needs.

An employer benefits package is a set of 

 that supplement an employee’s salary. These benefits can be tailored based on job roles, company policies, and industry standards to support employee well-being.

To determine the right approach, consider your company size, budget, and workforce preferences. 

(We discuss this in detail in the section on creating a benefit package.)

A well-rounded benefits package should provide essential benefits while allowing room for customization where possible.

An employee benefits package isn’t just ‘good to have’ — it’s a strategic investment in your business. Here’s why:

Most job seekers look beyond salary when evaluating job offers. 

That’s why a competitive benefits package — including health coverage, pension plans, and flexible work options — can give your company an edge in a crowded hiring market.  

 found that 91% of employees would consider changing jobs to gain access to the financial benefits they need. 

A strong benefits offering also enhances your employer brand, positioning your company as “the place to work” for top talent. 

Employers that prioritise employee well-being often see higher application rates, stronger referrals, and overall lower recruitment costs.

 are more likely to stay with an employer that offers a well-structured benefits package.

Providing perks like career development opportunities, financial well-being incentives, and work-life balance policies boosts employee retention. 

According to Gallup, replacing an employee can cost 

one and a half to two times their annual salary

. These costs go beyond recruitment and onboarding; turnover can disrupt team morale, reduce productivity, and even weaken client relationships.

A well-structured benefits package helps prevent these costly disruptions. 

As mentioned earlier, offering competitive benefits can improve retention, engagement, and productivity — all of which directly impact your bottom line. 

Beyond employee attrition, there is another cost that employee benefits help to bring down — your tax liability.

Benefits like pension contributions, health insurance, and salary sacrifice schemes offer tax efficiencies that reduce overall employment costs. 

For example, in Ireland, employer pension contributions are tax-deductible, reducing corporate tax liability by 12.5%. In the UK, they are a deductible business expense, potentially reducing corporate tax liability by up to 25%, depending on the tax rate.

Employees who feel supported - whether through career growth programs, wellness initiatives, or flexible work arrangements - are more engaged and motivated.

This results in higher productivity and better business outcomes.

A Gallup study found that companies with high employee engagement had 

, showing how an engaged workforce can yield better business results.

Which Benefits Should You Include in Your Employer Benefits Package?

Generally, employee benefits fall into two categories:

Discover how top European startups and scaleups structure their benefits in 

The State of Benefits in European Tech 2024

A strong benefits package typically combines both mandatory and supplementary benefits, covering these key categories:

Offering health and well-being benefit packages helps your employees stay physically and mentally healthy — ensuring a happier, more productive workforce. Some common employee benefits are:

Monetary benefits give your employees the financial security and motivation to stay with your company. Popular financial employee benefits include:

3. Professional and Personal Development Benefits

Career growth opportunities help employees expand their skills and progress within the company. Common employee benefits include:

Work-life balance policies help employees manage their professional and personal responsibilities, reducing stress and increasing job satisfaction. Popular work-life benefits include:

While optional, offering extra employee perks can create a more enjoyable and engaging work environment. These perks boost employee morale and job satisfaction. 

How to Create an Attractive Employer Benefits Package for Your Team

Follow these five steps to design a workplace benefits package that meets both business needs and employee expectations:

Looking for an all-in-one platform to offer, manage, and scale employee benefits in Ireland and the UK? 

Simplify Employee Benefits Management With Kota

Kota is a modern employee benefits platform that makes it easy to set up a compliant, cost-efficient benefits package while reducing admin work. 

With a seamless onboarding process, trusted provider coverage, HRIS sync, and built-in compliance for Ireland and the UK, Kota ensures your team gets the benefits they need — without the hassle.

 feature, you can easily add additional benefits — like well-being benefit programs or transport allowances — alongside core offerings, all in one platform.

 to give your team the support and flexibility they deserve.

We’ll answer some questions about employer benefits packages:

1. What Factors Affect the Cost of Employer Benefits Packages?

Several factors impact the cost of your benefits package:

2. How to Measure the ROI of Your Employer Benefits Package?

To measure the return on investment (ROI) of your employee benefits package, monitor these four key metrics:

3. Can You Offer Different Benefits Packages to Different Employees?

Yes! Employees have different priorities based on their life stage and personal situation. As a result, companies offer customisable or flexible benefits to meet the needs of their workforce. 

4. How Often Should You Review and Update Your Employee Benefits Package?

A full package review every 2–3 years helps maintain competitiveness, control costs, and ensure compliance. However, you may need annual or semi-annual updates based on:

Regularly refining your benefits package ensures it stays relevant and valuable to your employees.

Support Your Workforce with Comprehensive Benefits 

What Are Employer Benefits Packages & How to Offer Them?

Occupational pension schemes and Auto Enrolment are two distinct approaches to retirement savings in Ireland. 

With Auto Enrolment set to launch in September 2025, employers and employees must understand how it compares to traditional occupational pension schemes.

We’ll compare them in detail to help you determine the right option for your needs.

Occupational Pension vs Auto Enrolment in Ireland

Let’s first understand what occupational pensions and Auto Enrolment mean for businesses and employees in Ireland.

What Is the Auto Enrolment Pension Scheme?

 is a new retirement savings system aiming to expand Ireland's pension coverage. 

Starting in September 2025, Irish employers will be required to automatically enrol employees aged between 23 and 60 who earn over €20,000 annually, ensuring broad participation in the retirement savings scheme.

 (aka a company pension scheme) is an employer-established retirement pension plan designed to provide employees with benefits upon retirement. 

These schemes are typically flexible, allowing employers to determine their contribution rates and investment options and offering features like 

Additional Voluntary Contributions (AVCs)

For employers to be exempt from Auto Enrolment, their occupational pension scheme must meet certain basic criteria — such as having employer contributions (even if minimal) and covering eligible employees.

9 Key Differences Between Irish Auto Enrolment & Occupational Pension Schemes

5. Provisions for Additional Voluntary Contributions (AVCs)

Occupational Pension or Auto Enrolment Ireland: Which Is Better?

Like any significant change, automatic enrolment in Ireland comes with its share of pros and challenges. 

Need more flexibility and control over retirement savings?

Occupational pensions may be the better choice for your business and team. 

Why an Occupational Pension May Be a Better Choice For Your Business

Set Up Your Occupational Pension Scheme in Minutes with Kota

provides easy and efficient solutions to set up your 

Our platform is designed to simplify the process, offering tailored options for contributions, tax relief, and investments.

With Kota, employers have the flexibility to create pension arrangements that work for their teams. 

3 FAQs About Occupational Pension & Auto Enrolment in Ireland

Employee Benefits UK: What to Offer in 2025 (20+ Examples)

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