Employee Benefits

Description of Employee Benefits. Explanation.

Definition Employee Benefits. Description.

Employee Benefits are the non-wage part of remuneration consisting of a broad range of special payments or benefits in kind. Typical Employee Benefits are:

• Insurance.

  • Sickness / Medical.

  • Dental.

  • Life.

• Pension / Retirement benefits.

• Income protection / Social Security.

• Maternity Pay / Daycare / Child care.

• Profit sharing / Employee Stock Ownership Plan / Employee Stock Options

• Holiday / vacation.

• Relocation assistance / benefits.

• Golden Handshake / Golden Parachute / Golden Hello.

• Legal assistance.

• Company car.

• Company computer / internet access.

• Company mobile phone, PDA.

• Membership of sport and health clubs / Leisure activities during work time.

• Education / Personal development.

• Staff discounts.

• Industry-related benefits, such as special mortgage rates (banks).

Also called Fringe Benefits.

Historically, many of these benefits were negotiated by unions through Collective Bargaining. Lately, there is a tendency away from these generic benefits to more individual or Flexible Benefits, where the employees have an element of choice over the particular benefits they will receive. A special form of flexible benefits is the Cafetaria Benefits Model, wherein employees can choose and buy benefits that suit their specific wishes, spending a sum of money or points.

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End of description Employee Benefits. An explanation.