This Asinta report offers helpful insights into benchmarking employee benefits in the UK. It covers both mandatory and supplementary employee benefits and gives and overview of the UK benefits landscape including a benefits menu, mandatory requirements, and employment law. Typical benefit design and costs are also included in the report.
Salary levels impact benefits
In lower paid industries, you may find only senior managers in the UK are provided with supplemental employee benefits. However, if you have employees with substantial salaries (where base salary is over £180,000) these staff may have limitations applied to pension contributions. Please note in 2017, the average UK salary in the Private Sector was £26,400
Pensions are a mandatory benefit
In the UK, pensions are a mandatory benefit and subject to legislation. In light of this, employers must comply with this legislation and auto enroll eligible employees into an appropriate pension. In April 2019, the minimum contribution increased to 8%. The employer pays at least 3%. However, this is a minimum requirement. Most employers base their contribution strategy on industry norms and benchmarking data provided.
When designing your pension, take great care in the following areas:
- Contributions — how do they benchmark in your sector?
- Supplier — selecting the best supplier based on service and costs is important
- Default Fund — employers should consider the selected default fund and make active choices in this area