# Statutory benefits > Statutory benefits are the minimum entitlements employers must give every worker by law, covering things like paid leave, sick pay, and pension contributions. The exact rules differ country by country. Statutory benefits are the employment entitlements that national law requires every employer to provide. Unlike perks or voluntary allowances, these are not optional: failing to deliver them exposes the employer to fines, back-pay claims, or legal action. Common examples include paid annual leave, sick pay, pension or social-security contributions, parental leave, and health insurance, but the specific rules, rates, and thresholds vary significantly by country. In the UK, auto-enrolment pension, statutory sick pay, and 28 days of paid holiday are all legally mandated. In Germany, employers must fund occupational accident insurance and pay full salary during the first six weeks of illness. In Brazil, every formal employee is owed a 13th-month salary and an employer-funded severance reserve. Because no single global list covers every market, understanding local statutory floors is a critical first step before you hire anywhere new. ## How do statutory benefits differ from voluntary benefits? Statutory benefits are set by law and non-negotiable. Voluntary benefits are extras an employer chooses to offer, such as private health insurance, gym memberships, or enhanced parental pay. Both can appear in an employment contract, but only statutory ones carry a legal penalty if withheld. In practice, many employers top up statutory minimums to attract talent. For example, UK law requires a minimum pension contribution but many employers go higher. ## Why do statutory benefits vary so much by country? Each country designs its own employment and social-security legislation. Some fund healthcare through payroll taxes, others require employer-paid sick pay, and a few mandate year-end bonuses with no equivalent elsewhere. There is no single international standard. This is why hiring across borders requires country-specific compliance research rather than a single global checklist. ## What happens if an employer misses a statutory benefit? The consequences vary, but typically include back-payment of the owed benefit, financial penalties from the relevant labour authority, and potential claims brought by the employee. In some countries, non-compliance can also affect the validity of the employment contract itself. Regulators in markets like Germany and Brazil are known for active enforcement, making accurate local knowledge especially important. ## Key facts - **UK employer pension minimum:** 3% of qualifying earnings (employer), 8% total minimum (Source: The Pensions Regulator / GOV.UK, verified 2026-06-24) - **Brazil FGTS employer contribution:** 8% of gross monthly salary (Source: Employsome / Brazilian CLT framework, verified 2026-06-24) - **UK statutory sick pay (from April 2026):** £123.25 per week, payable from day one (Source: GOV.UK / Employment Rights Bill 2026, verified 2026-06-24) ## Frequently asked questions ### Are statutory benefits the same in every country? No. Each country sets its own rules. The UK requires auto-enrolment pensions and paid holiday. Germany mandates continued salary during illness and accident insurance. Brazil requires a 13th-month salary and an FGTS severance fund. You need to check the specific rules for every country where you employ people. ### Does an employer of record handle statutory benefits on my behalf? Yes. When you hire through an employer of record model, the EOR is the legal employer in each country and takes responsibility for calculating, paying, and reporting all required statutory benefits. That includes social-security contributions, sick pay, pension enrolments, and any mandated allowances. ### Can I offer less than the statutory minimum if a worker agrees? No. Statutory minimums cannot be waived by agreement. Even if an employee signs a contract accepting less than the legal floor, that clause is unenforceable. The statutory entitlement stands, and the employer remains liable for any shortfall. ### What is the difference between statutory and contractual benefits? Statutory benefits are the legal floor every employer must meet. Contractual benefits are anything extra that an employer commits to in the employment contract, such as enhanced sick pay or additional leave days. Once a contractual benefit is in the contract, it becomes a binding obligation even though it started as a voluntary choice. ## Sources - [Workplace pensions: What you, your employer and the government pay](https://www.gov.uk/workplace-pensions/what-you-your-employer-and-the-government-pay), GOV.UK - [Employee Benefits UK: Employer Legal Guide 2026](https://www.davidsonmorris.com/employee-benefits/), Davidson Morris - [Germany Mandatory Employee Benefits (2026 Guide)](https://fmcgroup.com/germany-mandatory-employee-benefits/), FMC Group - [FGTS Brazil: How the 8% Employer Contribution Works (2026)](https://employsome.com/hire/brazil/fgts-brazil/), Employsome - [Review of the Automatic Enrolment Earnings Trigger and Qualifying Earnings Band for 2025/26](https://www.gov.uk/government/publications/review-of-the-automatic-enrolment-earnings-trigger-and-qualifying-earnings-band-for-202526-supporting-analysis/review-of-the-automatic-enrolment-earnings-trigger-and-qualifying-earnings-band-for-202526-supporting-analysis), GOV.UK _Last updated 2026-06-24. Reviewed by Teamed's in-house employment-law team. Source: https://www.teamed.global/glossary/statutory-benefits_