Employee benefits and leave in the United Kingdom
UK employees get 5.6 weeks of paid leave a year, up to 52 weeks of maternity leave with 39 weeks of statutory pay, and a workplace pension with at least a 3% employer contribution. Since 6 April 2026 Statutory Sick Pay is payable from the first day of illness at £123.25 a week or 80% of earnings, whichever is lower. Healthcare is provided by the NHS, so private medical cover is a market extra, not a legal duty.
At a glance
Key figures with the official source for each, checked November 2026.
| Item | Rule or figure | Official source |
|---|---|---|
| Paid annual leave | 5.6 weeks a year, which is 28 days for a 5 day week. Bank holidays can be counted inside it | GOV.UK, Holiday entitlement |
| Bank holidays in 2026 | 8 in England and Wales, 10 in Scotland, 10 in Northern Ireland | GOV.UK, UK bank holidays |
| Statutory Sick Pay | £123.25 a week or 80% of average weekly earnings if lower, from the first day, for up to 28 weeks. Paid by the employer | GOV.UK, Statutory Sick Pay employer guide |
| Maternity leave | Up to 52 weeks. At least 2 weeks after the birth is compulsory | GOV.UK, Statutory Maternity Pay and Leave employer guide |
| Statutory Maternity Pay | 39 weeks: 6 weeks at 90% of average earnings, then 33 weeks at £194.32 or 90% if lower | GOV.UK, Statutory Maternity Pay and Leave employer guide |
| Paternity leave | 1 or 2 weeks, a right from the first day of employment since 6 April 2026. Pay is £194.32 a week or 90% if lower | GOV.UK, Statutory Paternity Pay and Leave employer guide |
| Unpaid parental leave | 18 weeks per child up to the 18th birthday, normally up to 4 weeks a year | GOV.UK, Unpaid parental leave |
| Workplace pension | Automatic enrolment from age 22 at £10,000 a year. Employer minimum 3%, total minimum 8% | GOV.UK, Workplace pensions |
| Employers' liability insurance | Compulsory in Great Britain, minimum cover £5 million | GOV.UK, Employers' liability insurance |
| Working time | 48 hours a week on average, normally measured over 17 weeks, with an individual opt-out | GOV.UK, Maximum weekly working hours |
Annual leave and bank holidays
The Working Time Regulations 1998 give almost all workers 5.6 weeks of paid leave a year. For a 5 day week that is 28 days, and the statutory entitlement is limited to 28 days even for someone working 6 days. Part-time staff get the same 5.6 weeks pro rata, so a 3 day week gives 16.8 days. People with irregular hours or part-year contracts accrue leave from the hours they work.
Bank holidays are not an extra statutory right. An employer can count them towards the 5.6 weeks, and the written statement must say whether it does. In 2026 there are 8 bank holidays in England and Wales and 10 each in Scotland and Northern Ireland.
- Sickness. Statutory leave keeps accruing during sick leave and can be taken while off sick.
- Records. Since 6 April 2026 employers must keep annual leave and holiday pay records for at least 6 years.
- Enforcement. The Fair Work Agency is expected to take on holiday pay enforcement as its powers are phased in.
In professional roles the usual offer is 25 days plus bank holidays, which is above the statutory floor.
Sick leave and who pays
Statutory Sick Pay is paid by the employer, not by a state fund, and it cannot be reclaimed from HMRC. The rules changed on 6 April 2026 under the Employment Rights Act 2025.
- Rate. £123.25 a week, or 80% of average weekly earnings if that is lower. Average earnings are taken over 8 weeks.
- Start. Payable from the first full day of sickness absence. The former 3 waiting days no longer apply.
- Coverage. The lower earnings limit has been removed, so low earners now qualify.
- Duration. Up to 28 weeks.
An employer can pay more than the statutory amount through a company sick pay scheme but never less, and the scheme must be set out in the contract. Sick pay terms must be given to the employee on day one.
Because the statutory rate is low compared with professional salaries, most office employers add company sick pay at full salary for a fixed number of days or weeks a year. That is a market practice and not a legal requirement. Some employers also buy group income protection insurance to cover long absences.
Maternity and adoption
Statutory Maternity Leave is up to 52 weeks: 26 weeks of ordinary leave followed by 26 weeks of additional leave. It is available to employees from day one, whatever their hours or pay. Leave can start up to 11 weeks before the expected week of childbirth. The employee must take at least 2 weeks after the birth, or 4 weeks in a factory.
Statutory Maternity Pay runs for up to 39 weeks:
- First 6 weeks at 90% of average weekly earnings, with no cap
- Remaining 33 weeks at £194.32 a week or 90% of average earnings, whichever is lower
To qualify for pay the employee needs 26 weeks of continuous service by the 15th week before the due date and average earnings of at least £129 a week. An employee who does not qualify may be able to claim Maternity Allowance from the state.
The employer pays through payroll and can usually reclaim 92% from HMRC, or 109% under Small Employers' Relief. Statutory Adoption Pay follows the same pattern and rates.
Stronger protection against dismissal for pregnant employees and maternity returners is scheduled for October 2027.
Paternity, shared parental and other family leave
- Paternity leave. 1 or 2 weeks, taken together or separately within 52 weeks of the birth. Since 6 April 2026 the leave is a right from the first day of employment. Pay still needs 26 weeks of service and earnings of at least £129 a week, and is £194.32 a week or 90% of earnings if lower.
- Shared parental leave. A mother can end maternity leave early and convert the balance into leave and pay shared with her partner. After the 2 compulsory weeks that leaves up to 50 weeks of leave and 37 weeks of pay. It is available in Great Britain.
- Unpaid parental leave. 18 weeks per child up to the child's 18th birthday, normally no more than 4 weeks a year. It became a day one right on 6 April 2026.
- Neonatal care leave. 1 week for every 7 continuous days a baby spends in neonatal care, up to 12 weeks.
- Carer's leave. 1 week of unpaid leave in every 12 months, from day one.
- Bereavement leave. A new unpaid statutory right, covering pregnancy loss, is scheduled for April 2027. Parental bereavement pay already exists at the same weekly rate as paternity pay.
Workplace pension
A workplace pension is the main mandatory benefit with a direct employer cost. Under the Pensions Act 2008 the employer must automatically enrol anyone aged between 22 and State Pension age who earns at least £10,000 a year and normally works in the UK.
- Minimum contributions. 3% employer and 5% employee, 8% in total.
- Earnings base. In most schemes the percentages apply to earnings between £6,240 and £50,270, so the statutory minimum is smaller than 3% of salary.
- Timing. Duties begin when the first member of staff starts. Newly eligible staff must be enrolled and written to within 6 weeks.
- Opting out. The choice belongs to the employee. An employer cannot contract out of the duty, and must re-enrol eligible leavers every 3 years.
The Pensions Regulator supervises compliance and can fine employers that miss the re-declaration.
In practice the pension is also the main lever in a competitive offer. Professional employers often contribute on full salary, at a rate above the minimum, and offer salary sacrifice so that employee contributions are made before tax and National Insurance.
Mandatory insurance, healthcare and working time
The National Health Service provides healthcare to residents and is funded through general taxation and National Insurance. An employer has no duty to buy health insurance and makes no separate health contribution.
The compulsory cover is employers' liability insurance. It must be bought from an authorised insurer as soon as the business becomes an employer, with at least £5 million of cover. The penalty is £2,500 for each day without cover, and up to £1,000 for failing to display or produce the certificate. The duty applies in England, Scotland and Wales. Under an EOR arrangement the EOR, as the legal employer, holds this policy.
Working time limits also operate as a benefit floor:
- An average of 48 hours a week, normally measured over 17 weeks
- An individual written opt-out is allowed, and the worker can withdraw it
- No statutory overtime premium, provided average pay stays above the minimum wage
Flexible working can be requested by any employee. From October 2027 an employer that refuses will have to give one of 8 listed reasons and explain why refusal is reasonable.
Market-standard supplementary benefits
The statutory package is thin by European standards, so candidates in professional roles judge an offer by what is added on top. The items below are customary and not required by law.
| Benefit | Typical practice |
|---|---|
| Holiday | 25 days plus bank holidays |
| Pension | Employer contribution above the 3% minimum, often on full salary |
| Private medical insurance | Common in technology, finance and professional services |
| Life assurance | A multiple of salary paid as a lump sum on death in service |
| Income protection | Insured cover for long-term sickness |
| Enhanced family pay | Full pay for part of maternity or paternity leave |
| Company sick pay | Full pay for a set period before statutory pay applies |
Tax matters when pricing these. Private medical insurance is a taxable benefit in kind. The employee pays income tax on its value, and the employer pays Class 1A National Insurance at 15%. Employer pension contributions do not attract National Insurance, which is one reason UK packages lean towards pension.
A US employer should not try to copy a US plan design. Equity awards are possible but need UK tax advice before grant.
Frequently asked questions
How many days of paid vacation do UK employees get?
The statutory minimum is 5.6 weeks a year, which is 28 days for someone working 5 days a week. The employer may count the 8 bank holidays in England and Wales inside that figure. Most professional employers offer 25 days plus bank holidays.
Who pays sick pay in the UK, the employer or the government?
The employer pays. Statutory Sick Pay is £123.25 a week or 80% of average weekly earnings if lower, from the first day of illness since 6 April 2026, for up to 28 weeks. It cannot be reclaimed from HMRC.
How long is maternity leave in the UK and is it paid?
Leave is up to 52 weeks. Statutory Maternity Pay covers 39 of them: 6 weeks at 90% of average earnings and 33 weeks at £194.32 a week or 90% if lower. Employers can usually reclaim 92% of the statutory pay from HMRC.
Do UK employers have to provide health insurance?
No. Healthcare comes from the National Health Service. The compulsory items are a workplace pension with at least a 3% employer contribution and employers' liability insurance of at least £5 million. Private medical cover is a common voluntary benefit.
More on hiring in the United Kingdom
Employer of record and hiring guide for the United Kingdom · Payroll and taxes · Termination and notice · Contractors vs employees · Cost calculator · EOR vs PEO vs entity
Sources
- GOV.UK, Holiday entitlement
- GOV.UK, UK bank holidays
- GOV.UK, Statutory Sick Pay: employer guide
- GOV.UK, Statutory Maternity Pay and Leave: employer guide
- GOV.UK, Statutory Paternity Pay and Leave: employer guide
- GOV.UK, Workplace pensions for employers
- GOV.UK, Employers' liability insurance
- Acas, Employment Rights Act 2025
This page is general information, not legal, tax or immigration advice. Rates, thresholds and procedures change, and how they apply depends on the facts. Confirm current figures with a qualified adviser or with Dryft before acting. Checked November 2026.
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