Employee benefits: What you need to know

by Amber Rolfe

No matter what sector you’re in, you’ll have encountered some kind of employee benefits…

Whether you’re providing them as an employer or receiving them as an employee, benefits can be a great way to ensure a happy and productive workforce. But what do they actually involve?

To make sure you know what could be on offer, here’s everything you need to know about employee benefits:

What are employee benefits?

Employee benefits are extra incentives provided by employers, in addition to a worker’s normal salary or wages.

They’re designed to help promote employee satisfaction and wellbeing, and could include anything from dental care plans and pension schemes, to flexible working hours and family-leave support programmes.

Although some benefits are legally required (core benefits), others are offered as added perks that are used to attract and retain employees.

Who are employee benefits for?

Every employee is entitled to the core benefits their company offers, no matter how long they’ve worked there, and no matter what their level is.

However, more senior staff may sometimes have access to a larger benefits package. This is often referred to as fringe benefits or executive perks.

What are the core benefits?

Whilst each company will have different policies on the benefits they cover, all UK workers are entitled to the following statutory benefits:

• Workplace pension: This involves an employer helping to set up and contribute to funding their employee’s retirement, usually in the form of a workplace pension.
• Holiday allowance: You are entitled to a minimum of 5.6 weeks (28 days for a full-time worker) of paid annual leave per year.
• Sick leave: If you’re too ill to work, you can get £118.75 per week Statutory Sick Pay (SSP) for up to 28 weeks.
• Parental leave: This covers maternity, paternity, and adoption leave. For 2025/2026, statutory maternity, paternity, and shared parental pay is £187.18 per week (or 90% of your average weekly earnings, whichever is lower).
• Bereavement leave: Eligible parents are entitled to two weeks of paid parental bereavement leave if they lose a child under 18 or suffer a stillbirth after 24 weeks of pregnancy.

What other benefits could I get?

Optional benefits, often called company perks, go beyond the statutory requirements. Employers use these to boost retention, shape a positive company culture, and grab the attention of top applicants. 

In fact, sometimes the perks are what seal the deal – with one in five people we surveyed saying they would only apply for jobs that list financial benefits, and almost half saying flexible hours are a major draw.

Here are some of the most common (and in-demand) perks you might see:

• Flexible working options: In the form of flexible hours, hybrid working, nine-day fortnights, or even a four-day work week.
• Employee health insurance: Including access to private medical or dental care plans, eye tests, or mental health cover.
• Wellness programmes: From subsidised gym memberships and cycle-to-work schemes, to meditation app subscriptions and regular wellbeing check-ins.
• Mental health support: Employee Assistance Programmes (EAPs) offer confidential counselling, mental health first aiders, and wellness allowances you can use for therapy, yoga, and more. 
• Learning and development: Such as annual budgets for training courses, conferences, books, or online learning – along with progression frameworks and mentorship schemes so you can keep climbing the ladder.
• Nomad working: For example, the opportunity to work remotely from a different country for a few weeks each year.
• Financial bonuses: These could be annual, performance-based, or referral bonuses – and sometimes all three if you’re lucky.
• Lifestyle perks: Like free food and drinks, company cars, generous employee discounts, or even help with commuting costs.
• Enhanced leave: whether it’s extra days off for birthdays or duvet days, enhanced compassionate leave, or parental leave policies that go well above the legal minimum.
• Creative extras: Such as tech-driven benefits like online portals for managing perks, holiday booking apps, and even digital concierge services to sort your errands for you.

With so much variety out there, it’s worth asking what’s on the table before you accept a new role – as these benefits can make a real difference to your work (and home) life.

What is the purpose of employee benefits?

Employee benefits are beneficial to both employees and employers.

Employees are able to:

• Save money and add to their disposable income (hello, employee discounts).
• Improve their workplace wellbeing.
• Maintain a better work-life balance through flexible working.

Employers are able to:

• Recruit and retain the best staff.
• Boost morale and improve company culture.
• Benefit from a more productive workforce.

Should I ask about a company’s benefit package?

Although many employers will state a list of the benefits they include in the job description, it might not always be clear from the outset what’s on offer.

However, asking a potential employer to confirm the benefits they offer is absolutely essential before accepting any job.

Not only could it help influence your decision, it may also give you the opportunity to negotiate on the package you receive – whether it’s to cover moving expenses or gain flexible working hours.

Just make sure you’ve done your research before you make your requests. After all, smaller companies are unlikely to have the same level of flexibility as their larger scale neighbours.

Employee perks: What UK workers really want

How can I tell what employee benefits are available?

There are a few places to find a list of the employee benefits your organisation offers, although this may vary from company to company.

Here a few ways of finding out:

• Check the job description (if it’s a new role).
• Read your employee contract.
• Ask your HR department.
• Look on the company website.

Office perks: Have they lost their pulling power?

Frequently asked questions

What is compassionate leave?

Compassionate leave (sometimes called bereavement leave) is time off work granted after the death of a dependent or close relative. While parental bereavement leave is statutory, other forms of compassionate leave are usually at the employer’s discretion regarding pay and duration.

Can self-employed people get benefits?

Generally, self-employed benefits are limited compared to employees. You don’t get statutory sick pay or holiday pay, but you may be eligible for certain state benefits like Maternity Allowance depending on your National Insurance contributions.

Is private health insurance a taxable benefit?

Yes, if your employer pays for your medical insurance, it is usually considered a ‘benefit in kind’, meaning you may have to pay tax on it.

Looking for a role with better benefits? View all available jobs now.