Types of Employee Benefits and Perks: Explained

Photo by Scott Graham on Unsplash
2 years ago

In the modern workplace, benefits and perks are an important factor in job satisfaction. No one wants to work for a company that doesn’t offer any sort of compensation outside of the salary – it feels like they’re just being taken advantage of. On top of this, other companies do provide some type of compensation or perk that makes their employees want to stay with them longer. These things can be anything from free food at lunchtime, to a gym on-site where you can work out during break time if you don’t have time to go home before heading back to work, or even just providing transportation so you don’t have to worry about getting in your car after working all day and risking traffic.

In this article, we’re going to be discussing the different types of employee benefits and perks that are commonly seen in workplaces today. This will include things like health insurance, retirement plans, paid time off, and more.

13th paycheck

The 13th salary is an extra paycheck that some companies offer their employees. It is usually given in December, as a way of thanking employees for their hard work throughout the year. This extra payment is a way to show appreciation and to make sure that employees feel valued. In addition, the computation of 13th month pay is mandatory in some countries, like the Philippines. It is insured by Presidential Decree No. 851, while curiously enough many developed countries do not have laws that regulate any additional compensation for the workers’ benefit.

Health insurance

One of the most common benefits that you’ll see in a workplace is health insurance. In the United States, it’s required by law for companies that have 50 or more employees to provide some type of health insurance coverage. This helps to ensure that everyone has access to basic medical care, and it also means that people don’t have to worry about how they’re going to pay for things like doctor’s visits or prescriptions. Unfortunately, these insurances often cover only a portion of any medical bills, leaving the employee with a large amount of responsibility. On the other hand, in European countries, all citizens have health insurance, while those that work are insured by their companies. This is mandatory in most cases and the benefits are usually better than in the US.

Some companies offer additional health benefits to their employees. This can include things like dental and vision insurance, as well as other types of coverage that might not be included in the basic health insurance plan. These types of benefits are important because they help employees to feel like they are being taken care of by their employer. In addition, it can also save employees money on out-of-pocket costs for these types of services.

Paid time off

Another common benefit is paid time off, or PTO. This is time that you can take off from work, without having to use up any of your vacation days. It’s typically used for things like doctor’s appointments, sick days, or personal days. Some companies will have a set amount of PTO that you can take each year, while others will let you accrue it so that you can take more time off as needed. In addition, some companies offer unlimited PTO, which means that you don’t have to keep track of how much time you’re taking off – you can just take whatever you need.

Retirement plans

This is a way for employees to save money for their future, and it’s also a way for companies to attract and retain talent. Many times, these retirement plans will match the contributions that employees make, up to a certain percentage. For example, if an employee contributes 5% of their salary to their retirement plan, the company may match that contribution with an additional 5%. This is a great way to help employees save for their future, and it’s also a way for companies to invest in their employees.

Life insurance policies

Some companies will also offer life insurance policies to their employees. This can help to provide financial security for employees’ families in the event of their death. In addition, it can also be used as a way to attract and retain talent.

It’s no secret that life insurance policies are a great way to provide financial security for employees and their families. But there’s another reason why it can be beneficial: It can also show employees how much the company cares about them, as well as help to attract and retain talent. For example, if an employee has a life insurance policy through work, then the company is essentially saying “we care enough about you that we want to make sure your family will be taken care of in the event of an accident or death.”


Profit-sharing is when a company gives a portion of its profits to its employees. This is usually based on a percentage of the employee’s salary, and it’s a way for them to share in the company’s success. This can also be a great motivation strategy because it allows the workers to earn more money when providing better results and investing their complete focus on the job at hand.

Stock options

Stock options are another way that companies can invest in their employees. This is when an employee is given the option to purchase shares of the company’s stock at a discounted price. This is a great way to incentivize employees, and it also gives them a chance to own a piece of the company that they work for. Small companies and startups often use stock options as a way to attract and retain talent.

Employee discounts

Another great perk that many companies offer is employee discounts. This can be for things like clothing, travel, or even gym memberships. This is a great way to show employees that you value their business, and it’s also a way to help them save money on things that they would already be buying.

Flexible work schedules

Flexible work schedules are becoming more and more common and for good reason. They allow employees to have a better work-life balance, and they also give employees the ability to take care of personal errands during the day. In addition, flexible work schedules can also help to increase productivity because employees can work when they are the most productive.

Sabbatical leaves

Sabbatical leaves are when an employee takes a leave of absence from work for a certain period. This can be used for things like personal growth, travel, or even research. Many times, these leaves are unpaid, but some companies will offer a stipend to help cover the costs associated with the leave.

All in all, there are a lot of great benefits and perks that companies can offer to their employees. These are just a few of the most common ones, but there are many others as well. The important thing is to find the right mix of benefits and perks that will work for your company and your employees. Each one has its advantages and disadvantages, so it’s important to choose the ones that will work best for your company and your employees.

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