{{short description|Non-wage compensation provided to employees in addition to normal wages or salaries}} {{For|the classification given by the International Accounting Standards Board|IAS 19: Employee Benefits}} {{Redirect|Perq|the computer workstation|PERQ}} {{Personal finance}} '''Employee benefits''' and '''benefits in kind''' (especially in [[British English]]), also called '''fringe benefits''', '''perquisites''', or '''perks''', include various types of non-wage compensation provided to an [[employee]] by an employer in addition to their normal [[wage]] or [[salary]].<ref name="uslabor">{{cite web|url=http://www.bls.gov/bls/glossary.htm|title=BLS Information |date=February 28, 2008|work=Glossary|publisher=U.S. Bureau of Labor Statistics Division of Information Services |access-date=2009-05-05}}</ref> Instances where an employee exchanges (cash) wages for some other form of benefit is generally referred to as a "[[salary packaging]]" or "salary exchange" arrangement. In most countries, most kinds of employee benefits are taxable to at least some degree. Examples of these benefits include: housing (employer-provided or employer-paid) furnished or not, with or without free utilities; group insurance ([[health insurance|health]], [[Dental insurance|dental]], [[life insurance|life]], etc.); [[Disability insurance|disability income]] protection; [[retirement plan|retirement benefits]]; [[daycare]]; [[Tuition payments|tuition]] reimbursement; [[sick leave]]; [[Annual leave|vacation]] (paid and unpaid); [[social security]]; [[profit sharing]]; [[employer student loan contributions]]; [[conveyancing]]; [[long service leave]]; domestic help (servants); and other specialized benefits.
The purpose of employee benefits is to increase the economic security of staff members, and in doing so, improve [[employee retention|worker retention]] across the organization.<ref>[http://www.abenity.com/celebrate/archives/3030 Abenity: What Does It Cost To Replace An Employee?]</ref> As such, it is one component of [[reward management]]. Colloquially, "perks" are those benefits of a more discretionary nature. Often, perks are given to employees who are doing notably well or have seniority. Common perks are [[take-home vehicle]]s, [[hotel]] stays, free refreshments, leisure activities on work time ([[golf]], etc.), [[stationery]], [[allowance (money)|allowance]]s for [[lunch]], and—when multiple choices exist—first choice of such things as job assignments and vacation scheduling. They may also be given first chance at job promotions when vacancies exist.
==Managerial perspective== The Bureau of Labor Statistics,<ref>Bureau of Labor Statistics (2008). Online Glossary. Available at: http://www.bls.gov/bls/glossary.htm#B</ref> like the International Accounting Standards Board,<ref>International Accounting Standard 19: Employee Benefits, retrieved from: http://eifrs.ifrs.org/eifrs/bnstandards/en/2015/ias19.pdf</ref> defines employee benefits as forms of indirect expenses. Managers tend to view compensation and benefits in terms of their ability to attract and retain employees, as well as in terms of their ability to motivate them.<ref>{{cite journal |first1=K. C. |last1=Chan |first2=M. V. |last2=Gee |first3=T. L. |last3=Steiner |title=Employee Happiness and Corporate Financial Performance |journal=Financial Practice & Education |date=2000 |volume=10 |number=2 |pages=47–52 }}</ref>
Employees – along with potential employees – tend to view benefits that are mandated by regulation differently from benefits that are discretionary, that is, those that are not mandated but are simply designed to make a compensation package more attractive. Benefits that are mandated are thought of as creating employee rights or entitlements, while discretionary benefits are intended to inspire employee loyalty and increase job satisfaction.<ref>{{cite journal |first1=Barton L. |last1=Weathington |first2=Lois E. |last2=Tetrick |title=Compensation or Right: An Analysis of Employee 'Fringe' Benefit Perception |journal=Employee Responsibilities and Rights Journal |date=September 2000 |volume=12 |number=3 |pages=141–162 |doi=10.1023/A:1011153710102 |s2cid=142098512 }}</ref>
==Canada== Employee benefits in [[Canada]] usually refer to employer sponsored life, disability, health, and dental plans. Such group insurance plans are a top-up to existing provincial coverage. An employer provided group insurance plan is coordinated with the provincial plan in the respective province or territory, therefore an employee covered by such a plan must be covered by the provincial plan first. The life, accidental death and dismemberment and disability insurance component is an employee benefit only. Some plans provide a minimal dependent life insurance benefit as well. The healthcare plan may include any of the following: hospital room upgrades (Semi-Private or Private), medical services/supplies and equipment, travel medical (60 or 90 days per trip), registered therapists and practitioners (i.e. physiotherapists, acupuncturists, chiropractors, etc.), prescription requiring drugs, vision (eye exams, contacts/lenses), and [[Employee assistance program|Employee Assistance Programs]]. The dental plan usually includes Basic Dental (cleanings, fillings, root canals), Major Dental (crowns, bridges, dentures) or [[Orthodontics]] (braces).
Other than the employer sponsored health benefits described above, the next most common employee benefits are group savings plans (Group [[Registered retirement savings plan|RRSPs]] and Group Profit Sharing Plans), which have tax and growth advantages to individual saving plans.<ref>{{Cite journal|last=Daly|first=Michael J.|date=1983|title=Some Microeconometric Evidence Concerning the Effect of the Canada Pension Plan on Personal Saving|jstor=2554121|journal=Economica|volume=50|issue=197|pages=63–69|doi=10.2307/2554121|issn=0013-0427}}</ref>
==United States== Employee benefits in the [[United States]] include [[Relocation services|relocation assistance]]; [[Health insurance in the United States|medical, prescription, vision and dental plans]]; health and dependent care [[flexible spending account]]s; [[retirement]] benefit plans (pension, [[401(k)]], [[403(b)]]); [[life insurance|group term life]] insurance and accidental death and dismemberment insurance plans; income protection plans (also known as disability protection plans); [[long-term care insurance]] plans; legal assistance plans; medical [[second opinion]] programs, [[adoption]] assistance; [[child care]] benefits and [[Employer transportation benefits in the United States|transportation]] benefits; paid time off (PTO) in the form of vacation and sick pay. Benefits may also include formal or informal employee discount programs that grant workers access to specialized offerings from local and regional vendors (like movies and theme park tickets, [[workplace wellness|wellness programs]], discounted shopping, [[hotel]]s and [[resort]]s, and so on).<ref name= tfbg>"[https://www.irs.gov/pub/irs-tege/fringe_benefit_fslg.pdf Taxable Fringe Benefit Guide]". ''Internal Revenue Service''. 2012.</ref><ref name = "Abenity">"[http://www.abenity.com/celebrate/archives/2435 What Is An Employee Discount Program?]". ''Abenity''.</ref>
Employers that offer these types of work-life perks seek to raise employee satisfaction, corporate loyalty, and worker retention by providing valuable benefits that go beyond a base salary figure.<ref name = "Abenity" /> Fringe benefits are also thought of as the costs of retaining employees other than base salary.<ref>{{cite web|title=Why Your Top Talent Is Leaving In 2014, And What It'll Take To Retain Them|url=https://www.forbes.com/sites/jacquelynsmith/2014/01/24/why-your-top-talent-is-leaving-in-2014-and-what-itll-take-to-retain-them/|website=Forbes|access-date=27 January 2015}}</ref> The term "fringe benefits" was coined by the [[National War Labor Board (1942–1945)|War Labor Board]] during [[World War II]] to describe the various indirect benefits which industry had devised to attract and retain labor when direct wage increases were prohibited.
Some fringe benefits (for example, accident and health plans, and group-term life insurance coverage up to $50,000) may be excluded from the employee's gross [[income]] and, therefore, are not subject to federal [[income tax]] in the United States. Some function as tax shelters (for example, flexible spending, 401(k), or 403(b) accounts). These benefit rates often change from year to year and are typically calculated using fixed percentages that vary depending on the employee’s classification.
Normally, employer-provided benefits are tax-deductible to the employer and non-taxable to the employee. The exception to the general rule includes certain [[corporate officer|executive]] benefits (e.g. [[golden handshake]] and [[golden parachute]] plans) or those that exceed federal or state tax-exemption standards.
[[United States|American]] corporations may also offer [[cafeteria plan]]s to their employees. These plans offer a [[menu]] and level of benefits for employees to choose from. In most instances, these plans are funded by both the employees and by the employer(s). The portion paid by employees is deducted from their gross pay before federal and state taxes are applied. Some benefits would still be subject to the [[Federal Insurance Contributions Act tax]] (FICA), such as 401(k)<ref>{{Citation | url = https://www.irs.gov/taxtopics/tc424.html | publisher = IRS | title = Tax topics}}.</ref> and 403(b) contributions; however, health premiums, some life premiums, and contributions to flexible spending accounts are exempt from FICA.
If certain conditions are met, employer provided meals and lodging may be excluded from an employee's gross income. If meals are furnished (1) by the employer; (2) for the employer's convenience; and (3) provided on the business premises of the employer they may be excluded from the employee's gross income per section 119(a). In addition, lodging furnished by the employer for its convenience on the business premise of the employer (which the employee is required to accept as a condition of employment) is also excluded from gross income. Importantly, section 119(a) only applies to meals or lodging furnished "in kind." Therefore, cash allowances for meals or lodging received by an employee are included in gross income.
Qualified disaster relief payments made for an employee during a national disaster are not taxable income to the employee. The payments must be reasonable and necessary personal, family, living, or funeral expenses that have been incurred as a result of a national disaster. Eligible expenses include medical expenses, childcare and tutoring expenses due to school closings, internet, and telephone expenses. Replacement of lost income or lost wages are not eligible.<ref>{{cite web |last1= Lagasse |first1= David R. |last2= Bereznay |first2= Danielle M. |date= March 27, 2020 |url= https://www.mintz.com/insights-center/viewpoints/2226/2020-03-27-summary-cares-act-employers |title= Summary of CARES Act for Employers |work= Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. }}</ref><ref>{{USCode|26|139}}</ref>
Employee benefits provided through [[ERISA]] (Employee Retirement Income Security Act) are not subject to state-level [[insurance regulation]] like most insurance contracts, but employee benefit products provided through insurance contracts are regulated at the state level.<ref>{{Citation | last = Ford | first = J | year = 1995 | url = https://www.questia.com/googleScholar.qst;jsessionid=LvJpWQQ1BJ8RnTYsWvP4V7sQbbM0RS5nyghhYKTyVdvZD5LpLLMg!-99814901!-1553468468?docId=5000140154 | contribution = State-Mandated Employee Benefits: Conflict with Federal Law? | title = Monthly Labor Review | quote = | access-date = 2017-08-27 | archive-date = 2011-06-04 | archive-url = https://web.archive.org/web/20110604132412/http://www.questia.com/googleScholar.qst;jsessionid=LvJpWQQ1BJ8RnTYsWvP4V7sQbbM0RS5nyghhYKTyVdvZD5LpLLMg!-99814901!-1553468468?docId=5000140154 | url-status = dead }}</ref> However, ERISA does not generally apply to plans by governmental entities, churches for their employees, and some other situations.<ref name=HolidayPay>{{cite web|title=Holiday Pay|url=https://www.dol.gov/general/topic/wages/holiday|website=U.S. Department of Labor|access-date=27 January 2015}}</ref>
Under the [[Patient Protection and Affordable Care Act|Obamacare]] or ACA's [[Employer mandates|Employer]] Shared Responsibility provisions, certain employers, known as applicable large employers are required to offer minimum essential coverage that is affordable to their full-time employees or else make the employer shared responsibility payment to the [[Internal Revenue Service|IRS]].<ref>{{Cite news|url=https://www.irs.gov/Affordable-Care-Act/Employers/Employer-Shared-Responsibility-Provisions|title=Affordable Care Act: Employer Shared Responsibility Provisions |work= Internal Revenue Service |date=March 2, 2016|access-date=March 14, 2016 }}</ref>
Private firms in the US have come up with certain unusual perquisites.{{Citation needed|reason=Unqualified statement. Original reference hits paywall.|date=November 2023}}
In the United States paid time off, in the form of vacation days or sick days, is not required by federal or state law.<ref name=HolidayPay/> Despite that fact, many United States businesses offer some form of paid leave. In the United States, 86% of workers at large businesses and 69% of employees at small business receive paid vacation days.<ref>{{cite web|title=10 Benefits Businesses Offer Employees|url=http://onlinemba.ohio.edu/resources/infographics/10-items-business-offer-infographic/|website=Ohio University MBA Programs|access-date=27 January 2015}}</ref>
The term p''erk-cession'' was coined in a 2023 article by the ''[[Wall Street Journal]]'' as a [[portmanteau]] of [[wiktionary:perk|perk]] and [[recession]] to describe the reduction of employee benefits and workplace amenities.<ref>{{cite news |last1=Chaker|first1=Anne Marie|title=The Perk-Cession Is Under Way at Some Companies|url=https://www.wsj.com/articles/the-perk-cession-is-under-way-at-some-companies-9cb04e9c?|access-date=13 September 2025|work=Wall Street Journal|date=8 March 2023}}</ref> Perk-cessions are made to enable a business to focus on efficiency and cost.<ref>{{cite news |title=Should Workers Be Worried About a Perk-Cession?|url=https://www.shrm.org/topics-tools/news/benefits-compensation/workers-worried-perk-cession|access-date=13 September 2025|work=www.shrm.org}}</ref> Perk-cessions are not not well received by employees, negatively impacting [[company culture]].<ref>{{cite news |last1=Kidwai|first1=ByAman|title=Employee services and perks are seeing cuts at Google, Salesforce, and others|url=https://www.hr-brew.com/stories/employee-services-perks-cuts-Google-big-tech-salesforce-layoffs|access-date=13 September 2025|work=HR Brew|language=en-us}}</ref><ref>{{cite news |title=The downsides of cutting employee perks|url=https://www.hcamag.com/au/specialisation/benefits/the-downsides-of-cutting-employee-perks/451532|access-date=13 September 2025|work=www.hcamag.com|language=en}}</ref>
==United Kingdom== In the United Kingdom, employee benefits are categorised by three terms: flexible benefits (flex) and flexible benefits packages, voluntary benefits and core benefits.
"Core benefits" is the term given to benefits which all staff enjoy, such as pension, life insurance, income protection, and holiday. Employees may be unable to remove these benefits, depending on individual employers' preferences.
Flexible benefits, often called a "flex scheme", is where employees are allowed to choose how a proportion of their remuneration is paid or they are given a benefits budget by their employer to spend. Currently around a third of UK employers operate such a scheme.<ref>{{Cite web |url=http://www.employeebenefits.co.uk/item/12353/23/5/3 |title=March 7, 2011 author Employee Benefits magazine |access-date=January 20, 2012 |archive-url=https://web.archive.org/web/20120420153738/http://www.employeebenefits.co.uk/item/12353/23/5/3 |archive-date=April 20, 2012 |url-status=dead }}</ref> How flexible benefits schemes are structured has remained fairly consistent over the years, although the definition of flex has changed quite a lot since it first arrived in the UK in the 1980s. When flex first emerged, it was run as a formal scheme for a set contract period, through which employees could opt in and out of a selection of employer-paid benefits, select employee-paid benefits, or take the cash. In recent years increasing numbers of UK companies have used the tax and national insurance savings gained through the implementation of salary sacrifice benefits to fund the implementation of flexible benefits. In a salary sacrifice arrangement an employee gives up the right to part of the cash remuneration due under their contract of employment. Usually the sacrifice is made in return for the employer's agreement to provide them with some form of non-cash benefit. The most popular types of salary sacrifice benefits include childcare vouchers and pensions.
A number of external consultancies exist that enable organisations to manage Flex packages centred around the provision of an [[Intranet]] or [[Extranet]] website where employees can view their current flexible benefit status and make changes to their package. Adoption of flexible benefits has grown considerably, with 62% of employers in a 2012 survey offering a flexible benefit package and a further 21% planning to do so in the future.<ref>{{Cite web |url=http://www.employeebenefits.co.uk/benefits/technology-and-administration/buyers-guide-to-flexible-benefits-technology/101029.article |title=Aon Hewitt Benefits Administration Survey 2012 |access-date=2013-02-02 |archive-date=2015-10-03 |archive-url=https://web.archive.org/web/20151003182809/http://www.employeebenefits.co.uk/benefits/technology-and-administration/buyers-guide-to-flexible-benefits-technology/101029.article |url-status=dead }}</ref> This has coincided with increased employee access to the internet and studies suggesting that [[employee engagement]] can be boosted by their successful adoption.<ref>{{Cite web |url=http://www.personneltoday.com/articles/2007/11/26/43403/reward-and-benefits-performance-of-perks-over-pay-rises-for-improving-employee-engagement.html |title=Personnel Today: Reward and benefits of perks over pay rises for improving employee engagement |access-date=2009-01-10 |archive-url=https://web.archive.org/web/20081202212145/http://www.personneltoday.com/articles/2007/11/26/43403/reward-and-benefits-performance-of-perks-over-pay-rises-for-improving-employee-engagement.html |archive-date=2008-12-02 |url-status=dead }}</ref>
"Voluntary benefits" is the name given to a collection of benefits that employees choose to opt-in for and pay for personally, although as with flex plans, many employers make use of salary sacrifice schemes where the employee reduces their salary in exchange for the employer paying for the perk. These tend to include benefits such as the government-backed (and therefore tax-efficient) cycle to work, pension contributions and childcare vouchers and also specially arranged discounts on retail and leisure vouchers, gym membership and discounts at local shops and restaurants (providers include Xexec). These can be run in-house or arranged by an external employee benefits consultant.
== Third-party benefit providers == Many employers outsource portions of their employee-benefits functions to third-party platforms to simplify administration, broaden the range of offerings, and support employee wellbeing. These providers typically manage tasks such as enrollment, claims processing, and compliance, while also offering access to a range of employee services including retail discounts, wellbeing resources, employee assistance programmes (EAPs), and virtual healthcare.<ref>{{cite web |title=What is Benefits Outsourcing and Is It Right For You? |url=https://plansource.com/resources/blogs/what-is-benefits-outsourcing-and-is-it-right-for-you/ |access-date=14 August 2025 |website=PlanSource}}</ref><ref>{{cite web |date=12 December 2023 |title=New Survey Results: Companies Outsource 40% of Their Benefits Functions |url=https://blog.ifebp.org/new-survey-results-companies-outsource-40-of-their-benefits-functions/ |access-date=14 August 2025 |website=International Foundation of Employee Benefit Plans}}</ref><ref>{{cite web |date=11 March 2025 |title=Should You Outsource Benefit Administration? Pros, Cons, and Solutions |url=https://www.takecommandhealth.com/blog/should-you-outsource-benefit-administration-pros-cons-and-solutions |access-date=14 August 2025 |website=Take Command Health}}</ref>
Several platforms provide employee benefits at scale, including:
* '''Perkbox''', a UK-based provider offering over 9,000 discounts, wellbeing content, recognition tools, and a 24/7 employee assistance programme.<ref>{{cite web |title=Perkbox: Platform Overview |url=https://www.perkbox.com/platform/employee-benefits-scheme |access-date=14 August 2025 |publisher=Perkbox}}</ref><ref>{{cite web |title=Perkbox EAP Review |url=https://www.spill.chat/eap-review/perkbox |access-date=14 August 2025 |website=Spill Chat}}</ref>
* '''Reward Gateway''', which offers a global engagement platform combining perks, internal communications, and analytics for HR professionals.<ref>{{cite news |last=Walker |first=Amelia |date=12 July 2023 |title=Reward Gateway expands benefits platform for UK employees |url=https://www.hrgrapevine.com/content/article/2023-07-12-reward-gateway-expands-benefits-platform |access-date=14 August 2025 |newspaper=HR Grapevine}}</ref>
* '''Benify''', a platform supporting flexible remuneration, wellness benefits, and tax-efficient salary sacrifice arrangements across multiple markets.<ref>{{cite web |title=Benify UK |url=https://www.benify.com/uk |access-date=14 August 2025 |publisher=Benify}}</ref>
* '''Live Like Loyalty''', which combines national perks with over 250 regionally tailored offers from small businesses in the UK. It integrates employee wellbeing services through a partnership with TELUS Health.<ref>{{Cite web |title=Employee Benefit |url=https://californiaemployeebenefits.net/ |access-date=14 August 2025 |website=californiaemployee}}</ref><ref>{{cite web |title=Live Like Loyalty |url=https://www.livelikeloyalty.co.uk |access-date=14 August 2025 |publisher=Live Like Loyalty}}</ref><ref>{{cite web |date=3 May 2024 |title=The Rise of Local Perks in Employee Benefits |url=https://www.peoplemanagement.co.uk/article/1803212/the-rise-of-local-perks-in-employee-benefits |access-date=14 August 2025 |publisher=People Management}}</ref>
According to a 2022 survey by the Chartered Institute of Personnel and Development (CIPD), 62% of UK employers offered flexible or voluntary benefits, many of which are delivered through external platforms.<ref>{{cite web |title=Employee Benefits and Rewards Survey 2022 |url=https://www.cipd.org/uk/knowledge/reports/employee-benefits-rewards/ |access-date=14 August 2025 |publisher=CIPD}}</ref>
== National and local perks == Third-party employee benefit platforms often categorise perks into two main types: national and local.
'''National perks''' are widely available across the country—or internationally—and are negotiated with well-known brands. They include discounts on travel, leisure, dining, retail, cinema, and fitness services, plus access to wellbeing content and employee assistance programmes. Providers at this scale may bundle thousands of offers and digital resources into a single platform accessible across diverse regions and sectors. Some international platforms—such as those operated by Perkbox, Benify, or Reward Gateway—provide customisable benefits tailored to company size or industry, offering mobile interfaces and analytic tools to manage engagement and usage.<ref>{{cite web |title=Perkbox: Platform Overview |url=https://www.perkbox.com/platform/employee-benefits-scheme |access-date=14 August 2025 |publisher=Perkbox}}</ref><ref>{{cite web |title=Benify UK |url=https://www.benify.com/uk |access-date=14 August 2025 |publisher=Benify}}</ref><ref>{{cite news |last=Walker |first=Amelia |date=12 July 2023 |title=Reward Gateway expands benefits platform for UK employees |url=https://www.hrgrapevine.com/content/article/2023‑07‑12‑reward‑gateway‑expands‑benefits‑platform |access-date=14 August 2025 |newspaper=HR Grapevine}}</ref>
'''Local perks''', by contrast, are curated to reflect local communities and often involve independent businesses, such as cafés, barbershops, restaurants, independent gyms, and boutique retailers. Some platforms collaborate with hundreds of local providers across the UK to deliver hyper-local offers that align with regional lifestyles and spending patterns. Employers increasingly favour this model because research indicates that personalised, locally relevant perks can improve employee engagement and strengthen community ties—it can also differentiate an employer’s offering in competitive labour markets.<ref>{{cite web |date=25 November 2024 |title=5 local and global employee benefits trends you need to know |url=https://benifex.com/5‑local‑and‑global‑employee‑benefits‑trends‑you‑need‑to‑know |access-date=14 August 2025 |publisher=Benifex}}</ref> Some local schemes are combined with broader wellbeing resources—such as virtual GP access or mental health support—to deliver a comprehensive employee experience, as seen in platforms like Live Like Loyalty.<ref>{{cite web |date=3 May 2024 |title=The Rise of Local Perks in Employee Benefits |url=https://www.peoplemanagement.co.uk/article/1803212/the-rise-of-local-perks-in-employee-benefits |access-date=14 August 2025 |publisher=People Management}}</ref><ref>{{cite web |date=10 October 2023 |title=How localised benefits boost employee engagement |url=https://www.employeebenefits.co.uk/localised-benefits-employee-engagement/ |access-date=14 August 2025 |publisher=Employee Benefits UK}}</ref>
As hybrid and remote working become more widespread, localised perks have grown in popularity among HR teams aiming to engage employees living outside major urban centres. Combining national convenience with local relevance allows organisations to appeal to diverse demographic groups while fostering a stronger sense of belonging and community.
== Fringe benefits tax == In a number of countries (e.g., [[Australia]], [[New Zealand]] and [[Pakistan]]), the "fringe benefits" are subject to the [[Fringe Benefits Tax]] (FBT), which applies to most, although not all, fringe benefits. In [[India]], the fringe benefits tax was abolished in 2009.<ref name="FI">{{cite news|url=http://www.hindu.com/2009/12/22/stories/2009122257171400.htm|archive-url=https://web.archive.org/web/20091225103329/http://www.hindu.com/2009/12/22/stories/2009122257171400.htm|url-status=dead|archive-date=25 December 2009|title=New income-tax rules on perks to replace FBT notified | location=Chennai, India |work=[[The Hindu]]|date=22 December 2009}}</ref>
[[Health insurance in the United States#History|In the United States]], employer-sponsored health insurance was considered taxable income until 1954.<ref name=NBER>[http://www.nber.org/aginghealth/2009no2/w14839.html Employer-Sponsored Health Insurance and Health Reform] at [[National Bureau of Economic Research]].</ref>
==Disadvantages== In the event of financial hardship, companies may cease or place a moratorium on certain employee benefits that are deemed too costly, informally known as a [[perk-cession]]. Such actions are usually at the damage of employee morale/culture, and may result in employee turnover (which may further exacerbate financial hardships in addition to other cost-cutting measures such as [[Layoff|layoffs]]).<ref>{{Cite web |title=The downsides of cutting employee perks |url=https://www.hcamag.com/au/specialisation/benefits/the-downsides-of-cutting-employee-perks/451532 |access-date=2025-10-12 |website=www.hcamag.com |language=en}}</ref><ref>{{Cite web |last=Kidwai |first=ByAman |title=Employee services and perks are seeing cuts at Google, Salesforce, and others |url=https://www.hr-brew.com/stories/employee-services-perks-cuts-Google-big-tech-salesforce-layoffs |access-date=2025-10-12 |website=HR Brew |language=en-us}}</ref>
In the UK, benefits are often taxed at the individual's normal tax rate,<ref>[http://www.hmrc.gov.uk/helpsheets/490.pdf 490 (2008) Employee Travel – A tax and NICs guide for employers<!-- Bot generated title -->]</ref> which can prove expensive if there is no financial advantage to the individual from the benefit.
The UK system of state pension provision is dependent upon the payment of [[National Insurance Contributions]]. Salary exchange schemes result in reduced payments and so are may reduce the state benefits, most notably the State Second Pension.
==See also== * [[Benefit incidence]] * [[Novated lease]] * [[Income in kind]] {{Portal|Organized labour }}
==References== {{Reflist|30em}}
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{{DEFAULTSORT:Employee Benefit}} [[Category:Employee benefits| ]] [[Category:Tax terms]]