Key findings
- 53.9% of organisations define formal pay ranges for all permanent roles, and 26.2% do so partially (n = 267). (How do UK employers run and govern their annual pay review?)
- Paid overtime is the common approach, at 71.7% (n = 226, "Not applicable" excluded). Time off in lieu (TOIL) only is rare, at 19.5%. (How do UK employers pay for overtime, shift work and on-call?)
Every figure on this page comes from the lumi reward benchmark, with the number of organisations answering shown beside it. The papers below give the full distributions, and the public figures link to one page per metric. The register lists 93 metrics in this area, among them how the pay award is set, geographic pay differentiation within the UK and allowances or premiums currently paid; every one has a public definition in the metric register.
What the research says
2 papers
How do UK employers pay for overtime, shift work and on-call?
71.7%n = 226pay overtime
- Paid overtime is the common approach, at 71.7% (n = 226, "Not applicable" excluded). Time off in lieu (TOIL) only is rare, at 19.5%.
- Shift premiums for unsocial hours are paid by 96.8% of organisations answering (n = 218, "Not applicable" excluded).
- "No" is the common answer on paying hourly workers for shifts cancelled at short notice, at 46.1% (n = 219).
Also in the paper
- For zero- and low-hours workers, "Neither" is the common answer on reasonable notice of shifts and short-notice cancellation payments, at 33.1% (n = 121).
- "Per day" is the common basis for paying an on-call allowance, at 34.2% (n = 149). "Per call-out only (no retainer)" is the alternative, at 30.9%.
- The common standby structure is "Percentage of salary" for IT / Technology (22.7%, n = 88) and "Flat cash per week (retainer)" for Engineering & Maintenance (31.2%, n = 80).
- 46.3% pay one standby rate for every period (n = 95). Weekend nights are the period most often given a higher rate, at 43.2%.
How do UK employers run and govern their annual pay review?
84.1%n = 251run their main pay review once a year
- 53.9% of organisations define formal pay ranges for all permanent roles, and 26.2% do so partially (n = 267).
- 46.1% link their pay ranges to a documented job evaluation or grading framework (n = 267).
- 84.1% run their main pay review cycle annually (n = 251).
Also in the paper
- 45.0% say pay increases are not differentiated by performance rating, answering "flat or near-flat" (n = 258). 17.2% use a full merit matrix (n = 256).
- 45.7% do not review pay decisions for fairness before implementation (n = 267), and 65.7% do not put reward changes through an equality impact assessment (n = 265).
- Final sign-off on the annual pay decision sits with the HRD in 25.3% of organisations, the CEO/MD in 23.0% and a Remuneration Committee in 21.5% (n = 265).
- 63.3% run their pay review cycles on spreadsheets (n = 264).
The public figures
50 metric pagesOne page per metric, each with its figure, its base and its collection window, from lumi's public UK reward metrics. The register lists 93 metrics in this area; a figure is published where enough organisations have answered.
- Allowances reviewed within reward governance39.9% have allowances reviewed within reward governance in place; a further 34.7% have it partly in placen = 248
- Allowances differentiation by role level65.3% have allowances differentiation by role level in placen = 242
- Location of remote employees permitted to work from60.1% “Anywhere in the UK”n = 208
- Home-working expenses typically reimbursed or covered70.2% “IT equipment (laptop, screen, kit)”n = 262
- How often employees are typically paid77.2% “Monthly”n = 224
- Shift premiums paid for unsocial hours97.7% have shift premiums paid for unsocial hours in placen = 216
- Remote working base pay treatment65.3% “Base pay is protected”n = 121
- Location typically used to determine base pay for remote roles57% “National pay rate (location-agnostic)”n = 223
- How remote roles are benchmarked56.7% “Against national market rates”n = 217
- Remote-role pay decisions reviewed for consistency40.3% “No”n = 211
- Pay premiums or discounts for remote roles85.5% “No specific premiums or discounts”n = 220
- Top performers checked as above market median72.3% “No”n = 267
- Hourly workers paid if scheduled shifts are cancelled53.5% have hourly workers paid if scheduled shifts are cancelled in placen = 217
- Guaranteed minimum hours (hourly-paid)51.9% have guaranteed minimum hours (hourly-paid) in place; a further 38.5% have it partly in placen = 239
- Target market position on base pay100% have target market position on base pay in placen = 223
- Sources used for external pay benchmarks77.2% “Consultancy salary surveys (e.g., Mercer/WTW/Aon, Croner, Agenda Consulting)”n = 267
- Overtime paid91.1% have overtime paid in placen = 224
- Allowances or premiums currently paid48.9% “Acting-up allowance”n = 262
- Minimum hours paid per call-out87.2% have minimum hours paid per call-out in placen = 148
- Allowances consolidated into base pay at any point10% have allowances consolidated into base pay at any point in place; a further 40.2% have it partly in placen = 261
- Allowances included in holiday pay82.8% have allowances included in holiday pay in placen = 256
- Annual pay budget setting factors86.1% “Affordability / budget constraints”n = 267
- Pay increases differentiated by performance rating44.7% “No – flat or near-flat”n = 257
- Pay-for-skills maturity24.1% have pay-for-skills maturity in place; a further 40.6% have it partly in placen = 249
- Workforce cost as % of income (revenue)The median workforce cost as % of income (revenue) is 35%n = 247
- Pay review cycle frequency100% have pay review cycle frequency in placen = 236
- Salary increase budget as % of payrollThe median salary increase budget as % of payroll is 3.35%n = 248
- External pay and benefits benchmarking approach55.3% have external pay and benefits benchmarking approach in place; a further 26% have it partly in placen = 262
- Job-evaluation / levelling coverage76.8% have job-evaluation / levelling coverage in placen = 263
- Advance notice given for shift patterns38.4% “2 or more weeks”n = 211
- AI-skills pay premium92.5% “No”n = 265
- Typical payment per week of IT / Technology standby cover30.1% “No standby allowance paid”n = 83
- Typical payment per week of Engineering & Maintenance standby cover27% “No standby allowance paid”n = 74
- Typical standby payment for one weeknight of cover32.1% “No standby allowance paid”n = 131
- Target pay position in range for fully competent performers60.1% “At midpoint (100%)”n = 158
- Formal merit matrix use51.6% “No”n = 254
- Shift notice and cancellation pay for zero-hours workers33.3% “Neither”n = 120
- Guaranteed-hours offers for zero- and low-hours workers44.5% “No”n = 119
- Real Living Wage position37.3% “At/above RLW – not accredited”n = 263
- Starting-salary positioning policy57.1% “Below midpoint (minimum to mid)”n = 212
- Holiday pay method for irregular hours52.5% “Accrued and paid when taken (52-week average pay)”n = 217
- Typical promotion pay increase policy38.3% “Fully discretionary”n = 266
- Formal counter-offer policy54.3% “No formal policy (handled ad hoc)”n = 265
- Geographic pay differentiation within the UK45.9% “National single structure”n = 266
- Policy for pay at or above range maximum50.2% “Frozen until range moves”n = 211
- Line-manager pay-decision training44.9% “Guidance pack only”n = 263
- Apprentice/graduate pay progression framework50.2% “Ad hoc”n = 209
- Acting-up pay policy45.5% “Formal allowance or uplift policy”n = 264
- Agency worker benefits beyond the AWR minimum67.8% “Statutory only”n = 199
- Seasonal-peak premium or retention bonus31% “Peak premium”n = 100
Read off lumi's public metric pages as at 2026-10-31. Members see every metric in the register, against the peer group they choose.
Guides and templates
2 items
How-to guideHow to design on-call and standby pay
Design on-call and standby pay: working time and minimum wage rules, standby and call-out payments, weekend rates and the 2027 shift rights.
How-to guideHow to run an annual pay review: process and governance
Run a UK annual pay review step by step: calendar, data, merit approach, calibration, equality checks, sign-off, appeals and a post-review audit.
Frequently asked questions
How do UK employers run and govern their annual pay review?
In the lumi reward benchmark, 53.9% of organisations define formal pay ranges for all permanent roles, and 26.2% do so partially (n = 267).
How do UK employers pay for overtime, shift work and on-call?
In the lumi reward benchmark, paid overtime is the common approach, at 71.7% (n = 226, "Not applicable" excluded). Time off in lieu (TOIL) only is rare, at 19.5%.
What is typical overtime and on-call pay in the UK?
In the lumi reward benchmark, 71.7% of UK organisations pay overtime, 19.5% give time off in lieu (TOIL) only and 8.8% offer neither (n = 226), and 96.8% pay shift premiums for unsocial hours (n = 218). On-call allowances are most often paid per day (34.2%, n = 149), with per call-out only, with no retainer, the alternative at 30.9%. The minimum wage is not due for standby at home, and on-call allowances do not count towards it unless consolidated.