What are employee benefits?
Employee benefits are perks or incentives that employers provide in addition to an employee’s salary. Examples include paid holiday, health insurance, cycle to work scheme or shopping vouchers.
These benefits are an integral part of a company’s employee value proposition, designed to attract and retain talent, promote employee engagement, and contribute towards improving employee wellbeing.
What are the 4 types of employee benefits?
- Core funded benefits – These benefits are paid for by the employer and employees cannot opt out.
- Flexible benefits – These benefits are paid for by the employer and employees can opt in and out when they choose.
- Voluntary benefits – These benefits are discounted from the supplier and paid for by an employee’s net salary.
- Salary sacrifice – These benefits are paid for directly through the employee’s salary and achieve tax and national insurance savings.