Best Employee Benefits to Offer in The UK (2025)

Gone are the days when salary was the only incentive to retain employees. The workforce today is shifting its expectations regarding what it needs from prospective employers.

According to a Drewberry Insurance survey, salaries remain a top motivator, but perks that enhance financial freedom, improve work-life balance, and reduce personal expenses are equally important. Their report found that just 12% of employees are happy with the benefits they get at work. While nearly a third (29%) say they’re not satisfied¹.

The statistics clearly indicate that UK companies must review and revamp their employee benefit policies. This guide breaks down the best employee benefits in the UK, along with some additional perks that many companies offer to attract and retain top talent.

Before we begin, don’t forget to check out Wise Business. It offers a reliable and cost-effective solution for companies to pay their employees in multiple currencies without any hefty fees.

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What are workplace benefits and why do they matter in the UK?

Your team is the heart of your business. They help drive your success, but they’re also one of your biggest expenses. That’s why offering the right workplace benefits matters. These are the additional benefits employees receive beyond their salary, such as health insurance, paid holidays, pension plans, and other valuable job perks.

Using these, employees can achieve a better work-life balance, which in turn improves their performance at work. These benefits can make a big difference in how supported and valued your employees feel.

Like most of the world, employee benefits are more critical in the UK in 2025 than ever. Rising living costs and a competitive job market show that offering the right perks can make a big difference in attracting and keeping top talent. A significant number of UK workers are prioritizing benefits over salary.

According to MetLife UK, 40% of employees would accept a lower-paying job if it came with better benefits, such as income protection, hybrid working arrangements, or enhanced pension contributions².

Therefore, UK companies need to determine the best benefits for their employees. It’s their ticket to better job retention scores and a thriving business setup. Now, let’s find out about the mandatory benefits and supplementary rewards that are prioritized here in the UK.

Necessary job perks for the UK workforce

Almost every country regulates its employers to provide some mandatory benefits to workers. Keep in mind that not every benefit applies to every type of worker. It often depends on whether someone is full-time, part-time, or on a contract. That’s why it’s a good idea to get local advice to make sure you're ticking all the legal boxes.

Here are the top employee benefits that every UK business must provide:

Government health benefits

In the UK, healthcare is a key part of what makes a great employee benefits package. Thanks to the National Health Service (NHS), which is funded through taxes and National Insurance, most people can see a doctor, receive hospital treatment, and access some dental and eye care without incurring out-of-pocket expenses. It’s a solid foundation that ensures everyone has access to essential health support.

That said, NHS services can sometimes come with long wait times or limited access to specific treatments. To bridge that gap, many employers looking to offer the best company benefits in the UK choose to add private health insurance. This gives their teams faster access to care and specialists. It also shows that the company genuinely cares about their well-being.

Paid holidays and annual leave

In the UK, full-time employees are entitled to 28 days of paid holiday each year³. Depending on the job contract, this can include public holidays or be paid in addition to them. Holiday leave builds up over time and is adjusted for part-time workers based on the hours they work.

Maternity and paternity leave

Parental leave is a legal right in most countries, including the UK. New mothers can take up to 52 weeks of maternity leave, with pay structured as follows⁴:

• First 6 weeks: 90% of their average weekly earnings (before tax)
• Next 33 weeks: A fixed percentage per week or 90% of earnings (whichever is lower)

Fathers are entitled to up to two weeks of paid paternity leave at the same statutory rate.

This is the legal minimum. But companies looking to offer the best benefits often go the extra mile. They top up statutory pay or extend the duration of paid leave. Some also offer flexible working options (remote or part-time roles) to support parents returning to work. There is also the option of shared parental leave, which allows parents to divide their leave time in a way that suits their family's needs.

Statutory Sick Pay (SSP)

Statutory Sick Pay (SSP) and paid holidays are meant to support staff's wellbeing and financial stability. This rule provides a basic level of income for eligible employees who can’t work due to illness.

The protocols include:

• Employees receive payment from their employer for up to 28 weeks
• SSP starts after four days of being off sick in a row; the first three days aren’t paid
• Payments are made like regular wages and are subject to tax
• If sickness lasts longer than seven days, a doctor’s note is usually needed

Depending on the job contract, this may include public holidays or be in addition to them.

Workplace pension scheme

A pension is a type of retirement savings plan that helps employees save for their future. As an employer in the UK, you’re expected to enroll new employees into a workplace pension scheme and make regular contributions alongside what the employee pays in.

Most pension plans today follow a set contribution model. Both you and your employee put in a fixed amount each month. There is also another type, called a defined benefit plan. This is where the retirement payout depends on things like how long the person worked for you and what their salary was. But you should know that this type is becoming less common in private companies.

Pension rules are a bit more complex. It’s vital to seek professional assistance and closely monitor all policies.

Top 10 employee benefits to increase job retention

You don’t have to stop at the basics. There’s plenty of room to offer extra perks that make a real difference. These might be simple upgrades to what you already provide or more tailored benefits based on your team’s needs or how your company works.

Since expectations in the UK can differ from those in other places, it’s a good idea to consult with local experts in employee compensation. That way, you can put together a benefits package that genuinely fits your people and your business.

Listed below are the top 10 employee benefits for the UK:

Mental health support

Many employers are stepping up their support for mental health by offering benefits such as mental health days, access to therapy apps (like Calm or Headspace), and covering some costs for private counselling. Some organisations go further by offering group sessions, such as mindfulness or CBT workshops, or even providing mental health first aid training.

It’s also common to offer an Employee Assistance Programme (EAP). This involves providing confidential support for issues like stress or personal relationships. On top of that, laws like the Equality Act protect employees with mental health conditions, making sure they’re treated fairly at work.

Financial wellness programs

Surveys indicate that financial concerns are the leading cause of stress in the UK. Over a quarter of adults feel pressure daily⁵. In light of these circumstances, many employers are stepping up by offering financial well-being support as part of their good company benefits. These efforts include access to salary advance platforms, low-interest loan programs, budgeting tools, and pension guidance.

Life insurance

Many employers include life insurance as part of the job offer. It provides financial protection in the event that an employee passes away while still working for the company. The payout, typically based on the employee’s salary, is given to a chosen family member or dependent.

Private Medical Insurance (PMI)

According to Ravio, more than half of UK companies now offer private medical insurance (PMI)⁶. This illustrates the growing importance of employee health in the workplace. PMI helps cover the cost of private healthcare, including doctor visits, tests, treatments, and surgeries. Many employers include it to stand out in a competitive job market, particularly as NHS wait times continue to grow.

Employees value faster access to care, a choice of doctors, and the comfort of private hospitals. For employers, it’s also a tax-deductible benefit. This becomes a smart and supportive option for both sides.

Growth opportunities

One of the most valuable employee perks you can offer today is the opportunity to upskill. LinkedIn’s 2024 Workplace Learning Report reveals that learning enhances connection and purpose among employees⁷.

These training opportunities help your team build new skills, stay current with industry changes, and feel more motivated in their roles. When employees see a clear path to growth and improvement, they tend to perform better and stay longer. It’s a win-win for all!

Extra health coverage

Alongside medical insurance, many companies now include dental and vision plans as part of their popular employee benefits. These give employees the freedom to choose their own dentist or optician and help cover the cost of routine check-ups, treatments, or glasses.

Considering how the NHS doesn’t fully cover dental and eye care for everyone, offering this added support can really make a difference and is often seen as a valuable extra.

Company cars

In the UK, company cars are a valued perk. This is quite helpful for on-site roles. Employers may offer a vehicle or a cash allowance to help employees manage transport costs. Some handle maintenance in-house, while others leave it to the employee. Either way, it’s a practical benefit that supports mobility and helps attract and retain talent.

Customizable perks

It would not be incorrect to say that UK company benefits are becoming more flexible and inclusive. They provide employees the freedom to choose what suits them best. Instead of a one-size-fits-all approach, many businesses now offer customizable perks, such as flexible hours, remote work options, mental health support, or childcare assistance. This means that each person can now build a benefits package that fits their lifestyle and priorities.

Recognition and performance rewards

Showing appreciation at work makes a real difference. When employees feel noticed and valued, through simple thanks or formal rewards, they're more likely to stay motivated and loyal.

Peer recognition often has the biggest impact on morale and business outcomes. That’s why more companies are boosting pay and setting up recognition programs. A culture that celebrates its people keeps them engaged and less likely to leave.

Sustainability

Sustainability is becoming a big deal in the workplace. More employees now expect their employers to take it seriously. Some would even take a pay cut to work for an environmentally responsible company.

Although salary and location still matter, many workers are seeking businesses that are transparent about their eco-friendly efforts. 82% of people in the UK believe companies should play an active role in protecting the environment⁸.

How are the latest UK company benefits changing the job landscape?

We can see how there is a major change in UK job perks. They are more employee-centric, and companies want to recruit the top talent for longer periods. The table below shows a quick comparison between the latest and conventional benefits:

Category	Traditional Benefits	Emerging Personalized Options
Work Flexibility	Standard 9–5 office hours	Remote/hybrid work, flexible hours from day one
Healthcare	NHS access, basic private medical insurance	Custom wellness programs, mental health apps, subsidized therapy
Financial Support	Standard pension schemes	Financial coaching, salary advance tools, and budgeting workshops
Learning & Development	Occasional training sessions	On-demand courses, career pathing, personalized upskilling budgets
Recognition & Rewards	Annual reviews, manager-only praise	Peer-to-peer recognition platforms, real-time feedback tools
Sustainability Focus	Basic recycling programs	Green commuting perks, sustainability-focused workplace initiatives
Family Support	Statutory maternity/paternity leave	Enhanced parental leave, childcare vouchers, and fertility support
Perk Flexibility	Fixed benefits package	Pick-your-own perks, benefits tailored to lifestyle or life stage

The shifts mentioned here are proof of how good company benefits in the UK are moving from uniform offerings to flexible, human-centric support systems that reflect employees' real lives and values.

How to offer benefits for employees overseas?

As workforces become global, giving fair and competitive benefits is no longer a “nice-to-have.” It’s a must. But it’s not just about ticking boxes. For globally minded companies like Wise, which champions borderless financial services, it’s also about building an inclusive, equitable experience for all team members, wherever they are.

Start with local compliance and expectations

The first step is understanding the legal and cultural expectations around benefits in each country where your employees live. This includes:

• Statutory entitlements (like annual leave, maternity/paternity leave, healthcare, and pensions)
• Cultural preferences (such as 13th-month salaries in parts of Asia or generous parental leave in Nordic countries)

Ignoring these can lead to dissatisfaction, or worse, legal trouble!

Use global employment platforms to streamline

Tools like Remote, Deel, Oyster, and Papaya Global make it easier to hire, onboard, and offer localized benefits packages without setting up legal entities in each country. These platforms often:

• Stay up to date with local labor laws
• Offer standard benefit templates by region
• Manage payroll, taxes, and compliance on your behalf

This lets you focus on your team, not bureaucracy.

Handle currency and payments the right way

When offering monetary benefits (such as bonuses, allowances, or reimbursements), how you pay is just as important as the amount. Currency conversion fees, delays, and exchange rate fluctuations can reduce the value of international payments.

Here’s where Wise Business can make a big difference:

• Send money globally with real exchange rates
• Avoid hidden fees and high currency markups
• Pay employees in their local currencies, quickly and transparently

This not only saves money but also builds trust with your international team.

Get started with Wise Business 🚀

When you thoughtfully design the job perks for your offshore team, they show your employees you understand and support their needs, no matter where they are. Remote hiring platforms and payment solutions such as Wise make it easier to manage cross-border benefits while staying aligned with your company’s global vision.

FAQs - best employee benefits

What are the three key benefits of having a happy and positive team at work?

A happier workforce means employees are more productive, stick around longer, and work better together. This not only cuts hiring costs but also sparks creativity and helps the business grow. Simply put, happy teams make for a stronger company.

What employee benefits matter most to people in the UK?

In the UK, employees really value benefits that support their work-life balance. Convenience provided by employees is always cherished. Steps like flexible working hours, health and wellness programs, and paid time off can win their hearts. All in all, benefits that make life easier and healthier top the list.

Why is it important for staff to feel appreciated?

When employees feel appreciated and respected, they’re happier at work. Their retention chances are higher, and this creates a positive workplace where people are proud to be part of the team.

Sources used in this article:

1. Pay Isn’t Everything: The Benefits Employees Really Want In 2025
2. 40% would take a pay cut for better benefits
3. Holiday entitlement
4. Statutory Maternity Pay and Leave: employer guide
5. UK Household wealth reaches an average of £126,483 in the last year, but six in in ten do not feel financially comfortable
6. Employee benefits trends: The most popular benefits in 2025
7. Workplace Learning Report 2024
8. Why your business shouldn’t wait for a sustainability shift

Sources last checked 30/06/2025