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UK Recruitment Glossary

Income Protection (PHI)

Alex By Alex · 12-year UK recruiter · Updated April 2026

In recruiter context

Common UK employer benefit, typically pays 50-75% of salary for the duration of incapacity (often until retirement age) after a deferral period of 3-12 months. The deferral period is when statutory sick pay (SSP) and any employer enhanced sick pay applies. Worth checking your contract for: deferral period (how long before PHI kicks in), payment percentage, payment cap (£). Less common at smaller employers; standard at large UK corporates and financial services. Worth substantial value but often overlooked — at typical UK professional salary this is £30,000-£60,000/year of risk coverage you'd need to buy individually for £400-£1,500/year.

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