15 of the best employee benefits in the UK

15 employee benefits to consider for your business

Start by identifying the gaps in your existing benefits package. Some benefits support everyday spending or working arrangements; others provide help during illness or a major life change. A useful package can make room for both.

1. Enhanced company sick pay

Enhanced company sick pay gives employees more financial support during illness than Statutory Sick Pay (SSP) alone. Also called occupational sick pay, it can help someone manage their bills while they're unable to work. The amount, duration and eligibility depend on your policy, which should be clearly set out in the employment contract. 

You might offer a period on full salary, followed by a period on reduced pay. Before deciding, consider how your business would manage the payments alongside the cost of covering an absent colleague. A generous promise needs a budget behind it, particularly in a small team where one absence can have a substantial effect.

Make the policy easy to find and explain how employees report sickness and access support. Knowing what would happen to their income gives staff something concrete to plan around, rather than leaving them to ask when they're already unwell.

2. Private medical insurance

Private medical insurance (PMI) can give employees another route to diagnosis and treatment alongside the NHS, subject to the policy's cover and underwriting. For someone who needs a specialist appointment or eligible treatment, that access can be a meaningful part of their benefits package.

UK business health insurance options include Bupa Select, AXA Health's Business Health and Aviva's Solutions. These plans let employers shape their cover, but the benefits and conditions differ. You should compare the actual package you're being quoted across three areas:

• Outpatient cover - Check the allowance for consultations and diagnostic tests, so employees understand what support is available before any hospital admission.
• Medical history - Establish how underwriting treats pre-existing conditions. Employer-funded cover doesn't automatically include existing health problems; Bupa's policy guide, for example, explains how its underwriting arrangements affect cover.
• Treatment choices - Check which hospitals and specialists employees can use, and how they obtain approval for treatment. A scheme needs to be practical for where your team lives.

For a team spread across the country, for example, a lower premium may be less appealing if employees face long journeys to the available hospitals.

Employees usually pay Income Tax on the premium you fund, even if they never claim. Your payroll adviser can explain what that means for their take-home pay.

Your business also pays Class 1A National Insurance when it arranges and pays directly for non-exempt medical cover. Allow for that cost alongside the premium.

Comparing business health insurance can be complicated and time-consuming, so to save some time, you can request a comparison quote through myTribe and we’ll have a trusted business health insurance broker get in touch.

3. Flexible hours and hybrid working

Flexible working gives employees more say over when or where they work. Hybrid working addresses location, while flexitime changes working hours. 

For example, you could explore:

• Office teams - A mix of home and office days, with agreed times when colleagues are available to work together.
• On-site teams - More predictable rotas, agreed shift swaps or different start times, provided staffing and service requirements can still be met.

In Great Britain, employees have a day-one right to request flexible working; that isn't an automatic right to their preferred arrangement. Northern Ireland has different rules. An employer policy can go further by making the available options clear from the outset.

In its account of introducing a nine-day fortnight, CharlieHR describes giving teams alternate Fridays off, while customer-facing staff used a rota and received another day off in lieu. The useful lesson is how it shared access to time off while maintaining customer cover. Your team may need a different arrangement, with meetings and staffing planned around the flexibility you offer.

4. Enhanced employer pension contributions

Higher employer pension contributions put more of your money towards employees' retirement. You can increase the contribution you make or offer to match additional employee contributions up to a stated limit.

Workplace schemes include Nest and People's Pension. Showing your contribution in pounds helps employees understand what your business adds to their retirement savings.

Be clear about how the percentage is calculated. Qualifying earnings, used for automatic-enrolment minimum contributions, cover a band of pay rather than the whole salary. A percentage applied to that band can therefore produce a different amount from the same percentage of full pay. 

As an illustration, increasing your contribution from 4% to 5% on £30,000 of pensionable pay adds £300 a year to that employee's pension: £30,000 multiplied by one percentage point.

Matching can encourage employees to save more, but it requires them to afford the extra contribution. An employer uplift without that condition reaches staff who cannot currently set aside more of their salary.

5. Extra annual leave and holiday trading

Extra annual leave gives employees more paid time for family, rest or personal plans. For most people working five days a week, the statutory minimum is 28 days, which can include bank holidays. Make clear how your allowance improves on the relevant entitlement. 

You could provide additional days yourself or let employees buy more through an agreed reduction in pay. Those are different benefits: buying leave gives someone choice, but also reduces their income. If you offer a holiday-selling arrangement, it cannot remove the statutory leave employees must take. 

Think about when people can take their leave as well as how much you offer. Two additional days are more useful when employees can book them without returning to an unmanageable backlog.

6. Group income protection

Group income protection can help you continue paying an employee who cannot work because of illness or injury that meets the policy's definition of incapacity. It supports income during a qualifying absence while medical insurance addresses eligible healthcare costs.

Providers include  Aviva, Legal & General and Unum. When comparing quotes, look at the insured amount, payment duration and waiting period, known as the deferred period. Claims must meet the chosen policy's conditions.

Consider how that fits with company sick pay. If, for example, your full-pay promise ends before the insurance waiting period, decide how you would fund the gap. Also allow for the claim assessment and payment schedule rather than assuming money arrives as soon as the waiting period ends.

When comparing schemes, ask how any rehabilitation support works, what employees would receive through payroll and when payments would stop. 

7. Learning budgets and paid development time

A learning and development budget gives employees a way to build skills and work towards their next career step. Professional qualifications, continuing professional development (CPD), mentoring and paid study leave are all options to consider.

For online learning, LinkedIn Learning offers courses in business, technology and creative skills, while Coursera for Teams includes courses and professional certificates from university and industry partners. A subscription may suit employees exploring several skills; someone pursuing a specific qualification may need a dedicated course instead.

Give the budget some study time alongside it. For example, an employee could agree on a course with their manager and set aside a regular afternoon to study. That's a more workable offer than approving the fees while expecting all learning to happen around an unchanged workload.

You can link development to skills the business needs without restricting every opportunity to someone's current tasks. Discuss what the employee wants to learn and how they could use it. Keep approval straightforward, explain any conditions before they enrol, and make sure part-time and shift-based staff have a realistic opportunity to participate too.

8. Employee discounts

Employee discount schemes can reduce the cost of purchases staff already make. Perkbox and Reward Gateway's discount scheme are two options, offering savings through vouchers and cashback. Employees still fund their purchases unless you separately provide a reward or allowance.

A modest saving at the supermarket someone uses every week may matter more than a large discount on an occasional purchase. A scheme is more useful when its retailers fit your team's spending and its offers are easy to redeem.

When you review the scheme, ask about savings people have made, not just registrations. Avoid valuing the package by adding up advertised maximum discounts that nobody could realistically use together.

9. Health cash plans and dental or optical support

A health cash plan helps employees recover eligible everyday healthcare expenses, within the plan's limits. Business options from Simplyhealth, Westfield Health and BHSF can include help with dental, optical and physiotherapy costs. The benefits and reimbursement limits depend on the chosen plan.

For these routine expenses, employees generally pay for their appointment and submit a receipt to claim reimbursement.

The allowance matters. In a hypothetical plan that reimburses eligible dental spending in full up to £60 a year, an £80 check-up would leave the employee paying £20, assuming they hadn't used any allowance already. These figures illustrate the mechanism and aren't a quoted provider benefit.

For your team, a cash plan can make routine expenses easier to manage, but employees may still need money available upfront. It also serves a different purpose from insurance for eligible private hospital treatment.

10. Mental health support and employee assistance programmes

An employee assistance programme (EAP) gives staff a route to support with personal or work-related difficulties. Providers such as Wisdom Wellbeing and PAM Wellness offer short-term counselling alongside practical information and digital wellbeing resources. The service you buy determines what employees can access and how support is delivered.

Before introducing a service, establish what employees can access:

• Counselling - The assessment process, available sessions and what happens if someone needs support beyond the service's scope.
• Practical help - The subjects covered by advice lines and how employees reach the appropriate specialist.
• Digital resources - Whether an app offers information, self-guided exercises or access to a person, and which services are included.

Explain confidentiality clearly, including its limits and what information you receive as an employer. Staff should be able to understand this before deciding whether to use the service.

An EAP also needs to sit alongside manageable workloads and supportive management. Check whether your existing insurance or cash plan already includes one before paying for another, then make the access details easy to find when someone needs help.

11. Death-in-service life cover

Death-in-service life cover provides financial support following an insured employee's death, subject to the scheme's terms. Also called group life assurance, it can offer a lump sum to help those left behind manage household expenses or other commitments.

Aviva, Legal & General,  and Unum are just a few providers that offer group life cover. When selecting a provider, compare employee eligibility, the insured amount and how the scheme would handle a claim, as well as the premium.

The insured amount may be a fixed sum or a multiple of the earnings defined by the scheme. As an illustration, four times an insured salary of £30,000 would mean £120,000 of cover. That isn't a standard entitlement: the amount and eligibility need to match the policy you've arranged.

Explain how employees can record their wishes about beneficiaries and how the scheme handles payment decisions. Make sure they understand that their death-in-service benefit ends when they leave your employment and what this could mean for their family’s financial protection.

12. Enhanced parental leave and carers' support

Enhanced family benefits give employees more support around having children or caring for someone who depends on them. Your policy could improve pay, provide additional time off or make it easier to manage appointments and a return to work.

Start with the applicable legal rights, then decide where you can add support. Acas brings together the different leave and pay entitlements in Great Britain; check Northern Ireland requirements separately where relevant. Leave and statutory pay can have different eligibility conditions.

Consider three areas:

• New parents - Enhanced maternity, paternity, adoption or shared parental pay, with clear eligibility and support when employees return.
• Caring responsibilities - Paid time beyond the applicable minimum, or practical flexibility around a dependant's care needs.
• Difficult or unexpected circumstances - Additional support around fertility appointments or a baby's neonatal care, with privacy and sensitive handling built into the process.

Be specific about what you can offer. An employee planning time away needs to know how much income they will receive and for how long. Managers also need a workable cover plan, so accessing the benefit doesn't depend on an employee finding their own replacement.

13. Financial wellbeing support

Financial wellbeing support helps employees find reliable help with budgeting, debt or retirement decisions. You could arrange practical workshops, pension guidance sessions or private access to an appropriate specialist.

There are useful free resources too. Government-backed MoneyHelper provides impartial money and pension guidance. For help with debts, StepChange Debt Charity and National Debtline offer free advice online and by phone. 

These services are available to the public; your contribution is making employees aware of them and giving people time to seek help.

Keep participation voluntary and avoid asking staff to disclose personal debts to a manager. General education won't resolve every financial problem, and anyone needing a personal recommendation about a financial product should be directed to an appropriately qualified, regulated adviser. Check what any paid workplace service actually provides before describing it as financial advice.

14. Cycle-to-work and commuting support

A Cycle to Work arrangement can help eligible employees access a bicycle and safety equipment through their employer. Options include Cyclescheme, Halfords Cycle2Work and Evans Cycles Ride-to-Work. These schemes use salary sacrifice, where employees give up some gross pay in exchange for the benefit. It makes sense to compare participating retailers so staff can access the bikes and equipment they need.

Tax savings depend on meeting the scheme conditions, and salary sacrifice must not reduce pay below the applicable minimum wage. Explain the hire arrangement and any eventual ownership cost before employees commit; the bicycle doesn't automatically become theirs when salary deductions finish.

Consider colleagues who cannot cycle too. You could explore a season-ticket loan or practical help with transport to your workplace. Check the terms and tax treatment of each arrangement, and ask whether it addresses how people actually travel to work.

15. Fitness and wellbeing allowances

A fitness allowance gives employees support with activities they enjoy, whether that's a gym, swimming or exercise classes. You could reimburse approved spending, arrange a local membership or investigate a fitness network.

Wellhub offers subscription-based access, with both the employer and employee contributing. Hussle offers corporate access to discounted multi-gym memberships. Their value to your team depends on the available venues and what employees pay to use them.

A nearby pool with suitable opening hours may be more useful to a shift worker than a larger network they struggle to visit.

A flexible allowance can accommodate different preferences and accessible activities. Set clear spending rules and establish the tax treatment. Keep the focus on helping people participate, rather than rewarding those who already exercise most.

What will an employee benefits package cost?

The cost of your employee benefits package depends on what you offer, who can access it and how much the business is willing to fund. Before comparing quotes, define the package: an insurance policy, a pension uplift and an extra day's leave create different commitments.

Include three parts in your budget:

• Direct spending - Employer pension contributions, insurance premiums, platform charges and allowances. Check whether fees apply to every eligible employee or only those who enrol, and how prices can change at renewal.
• Time and administration - Payroll setup, employee communication, managing suppliers and covering time away. A policy without a supplier fee can still affect staffing or capacity.
• Employee costs - Contributions, reductions in salary and any tax on benefits. Make these clear before staff sign up, so the value they expect matches what they receive.

HMRC's expenses and benefits guidance is a useful resource which explains the reporting, tax and National Insurance treatment of different arrangements. Ask your accountant or payroll adviser to check the specific package to make sure that you have the necessary budget.

How to choose benefits your employees will actually use

Choose benefits around gaps your employees recognise and commitments your business can maintain. CIPD's 2026 benefits report highlights the importance of clear objectives, communication and checking whether the package meets its aims.

• Ask about priorities - Give employees a realistic shortlist and ask what would make the most difference. Include questions about benefits they already have but find difficult to access.
• Check who can participate - Consider different roles, working patterns, locations and caring responsibilities. A benefit that requires extra employee spending may be inaccessible to someone already struggling with their budget.
• Make the package understandable - Put eligibility, employee costs and access instructions in one place. A total reward statement can help explain the employer-funded value alongside salary, without presenting that value as extra take-home pay.
• Review the experience - Once your benefits are in place, look at usage, employee feedback and cost together. For instance, low use of a discount platform may be a reason to investigate whether the offers suit your team.

For a small business, a workable approach could be a shared core of benefits with some choice over extras. For example, you might enhance sick pay across the team and offer an allowance that employees can use for approved wellbeing activities. Someone could choose swimming while a colleague chooses exercise classes. Both receive support without needing the same membership.

Set the allowance and eligible spending before introducing that choice. Insurance eligibility and enrolment need to follow the scheme's terms. If you start with a package you can explain and deliver well, including the benefits already available through existing policies, you could have a winning combination.