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As a business owner or employer, you should be familiar with the various options available to you when it comes to employee benefits. It can allow you to ensure you are providing a positive working environment for your loyal and hard-working employees and may even prevent them from seeking alternative employment opportunities elsewhere. If you could benefit from brushing up on your knowledge of employee benefits in the UK, continue reading to find out everything you need to know.
Holiday pay
In the UK, employees that work a 5-day work are legally entitled to a minimum of 28 days of holiday pay, or paid annual leave, per year. In addition, your employees can choose whether or not to include public holidays within the 28 days with the decision they make largely due to which day the public holiday falls on as well as personal preference. It is worth remembering, however, that the vast majority of employers in the UK provide more than the minimum of 28 days of holiday pay per year and give their employees the opportunity to increase their holiday pay entitlement by working, or buying, more days as part of what is known as a flexible benefits agreement.
Maternity pay
In the UK, maternity pay is paid for up to 39 weeks. This includes 90% of your average weekly earnings before tax for a period of six weeks and either £151.97 or 90% of your average weekly earnings for the final 33 weeks with whichever option is lower the amount that will be paid. It is paid in the way your wages are usually paid, such as weekly or monthly, and subject to the same tax rules and regulations. If you are looking for maternity pay for you and your spouse, shared parental leave may be an option. This is also £151.97 or 90% of your average weekly earnings with whichever option is lower the amount that will be paid. In order to ensure your employees are happy, healthy, and motivated for work, Zest’s employee benefits platforms can streamline the entire process from start to finish.
Sick pay
In addition to holiday pay and maternity pay, employees in the UK are also entitled to a minimum level of sick leave pay, or statutory sick pay. As is the case with most employee benefits, however, the vast majority of employers choose to boost this amount by offering what is known as contractual sick pay benefits. This can be done in a number of ways but is usually done by paying sick pay for a predetermined length of time, such as three weeks, before reducing payments thereafter. It can, however, differ depending on the industry, sector, or company with some employers more generous than others.
Private medical insurance
When it comes to employee benefits in the UK, private medical insurance is also common and can be the difference between an employee seeking to join a particular company or continuing their job search elsewhere. The level of coverage offered by an employer can differ wildly but generally covers a minimum of 20 employees with monthly premiums subject to taxation in the form of Benefit in Kind, or P11D, and fully insured. A growing number of employers also offer dental insurance as an additional extra or as included in private medical insurance.
If you are looking to expand your knowledge of employee morale in the UK, there is a lot to learn. It may benefit you, for example, to find out more when it comes to holiday pay, maternity pay, sick pay, and private medical insurance.