Employee Benefits

Encyclopedia of Business and FinanceA-I (2000)

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Employee Benefits

Employee benefits are compensations given to employees in addition to regular salaries or wages. These compensations are given at the entire or partial expense of the employer. Benefit packages usually make up between 30 and 40 percent of an employee's total compensation for employment, which makes them an important aspect of the terms of employment. While some employee benefits are required by law, many employers offer additional benefits in order to attract and retain quality workers and maintain morale. Some types of benefits are also used as incentives to encourage increased worker productivity.

LEGALLY REQUIRED BENEFITS

While some benefits are offered as inc...

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