Employee benefits

In this chapter employee benefits are discussed. These may also be known as fringe benefits, allowances, benefits in kind, perquisites or ‘perks’. In principle these may be various non-wage compensations provided in addition to normal earnings. These have to be seen in conjunction with other rewards such as salaries and incentive payments. In this chapter employee benefits have been divided simply into three main types: financial, part-financial and non-financial. There is, of course, overlap between these three main types, and also tax payment implications. In considering employee benefits it is vital to recognise that what may be considered a motivational factor today may lose its effect over time because what is offered by only one or two employers to start with will be offered by many employers as they follow suit in a competitive labour market. Also, what is relevant today may not be attractive to the next generation.