Benefits Package

What Is A Benefits Package?

A benefits package refers to additional perks and bonuses an employee receives aside from their salary. It may include things such as medical insurance, vacation allowance, etc. 

Deeper Definition

A benefits package is anything an employee receives as part of their remuneration other than a basic salary. Employers use benefits packages to attract and retain talented people in their organizations. The benefits vary depending on the organization but may include gym memberships, a pension scheme where the employers provide a matched contribution to the pension fund, medical insurance, etc. 

Depending on the jurisdiction, the government may mandate employers to provide employees with specific benefits packages. However, in many cases, employers come up with a benefits package that suits the needs of their employees. 

Typically, employers do not give employees benefits packages in cash form, and it may vary depending on how long an employee has worked in a company or their role. Also, it may vary depending on how big the company is and our much revenue it generates. 

Some standard offerings include but are not limited to:

• Health Insurance: This is a standard benefits package employers often provide to employees, regardless of their service length or roles.

• Paid Time Off (PTO): This allows employees to take off for a specific number of days and still get paid. Generally, it includes absences related to vacation, illness, or personal circumstances.

• Disability Insurance: Depending on the organization, it could be insurance that assures employees that they would receive a percentage of their income if they cannot work for a short period due to illness or injury. Some organizations may offer long-term protection – an employee would receive a percentage of their income if they cannot work due to illness, injury, or accident for a long time.

Benefits Package Example 

Green Crypto Technologies, a new cryptocurrency company, is trying to win over a veteran computer engineer, Mr. Brown Johnson, to work for them. After going over the basic salary they offer, they throw in a couple of benefits packages to smoothen the deal, such as travel reimbursements, car allowance, and a life insurance policy that guarantees that his family will receive a percentage of his salary if he dies. Pleased with the offerings, Mr. Johnson accepts to work for them.