Perks

What Are Perks?

Perks, short for perquisites, refer to the additional benefits provided to employees over and above their regular salary or wages. These are non-monetary in nature but carry value that adds to the employee’s overall compensation package, alongside components like incentives or a performance-linked bonus. Perks are designed to improve employee satisfaction, reward loyalty, and promote work-life balance.

How do perks differ from benefits?

Although often used interchangeably, perks and benefits serve slightly different purposes in workforce management. Benefits (like health insurance, PF contributions, or retirement plans) are usually part of a standard employment contract and are often statutory. Perks, on the other hand, are discretionary and vary widely across industries and employers.

Example:

• Benefit: Medical insurance
• Perk: Free gym membership or meal vouchers

What are common types of employee perks?

Depending on the company’s policies, role levels, and geographic location, employee perks can include:

• Flexible working hours or remote work options
• Company-sponsored wellness programs
• On-site meals or food allowances
• Travel reimbursements or paid holidays
• Learning and development support
• Employee discounts on products or services
• Childcare support or parental perks
• Stock options or equity grants (in some firms)

Why are perks important?

Perks serve as a strategic tool in talent acquisition and retention. In competitive job markets, companies often use perks to differentiate themselves and attract top talent. Moreover, well-thought-out perks contribute to higher employee morale, engagement, and better workplace culture.

They also play a role in reducing burnout and absenteeism, especially when they support mental health, family life, or professional development.

Are perks taxable?

Yes, certain perks may be subject to taxation under income tax laws, depending on the country’s regulations and the nature of the perk. For instance, a company-provided car or accommodation may be considered a taxable fringe benefit.

Final Word

Perks reflect a company’s values and its approach to employee well-being. While not mandatory, offering meaningful perks can make a big difference in building a motivated and loyal workforce.