Perks are non-salary extras offered by employers to enhance the employee experience beyond pay and statutory benefits.
What are perks?
Perks are additional benefits, rewards or workplace advantages provided by employers alongside salary and mandatory employment entitlements. They can help support employee wellbeing, flexibility, professional development and overall job satisfaction.
Unlike statutory entitlements or core employee benefits, perks are typically discretionary and vary between organisations. Examples may include flexible working arrangements, wellbeing initiatives, professional development opportunities, employee discounts or lifestyle benefits.
While perks do not replace competitive pay or compliance with workplace obligations, they can help organisations differentiate themselves as employers and support attraction, engagement and retention efforts.
Things to know
- Perks are optional and defined by the employer.
- They sit alongside salary, superannuation and statutory employment entitlements.
- Perks may support employee wellbeing, flexibility, development or workplace culture.
- Some perks may have payroll, tax or reporting implications depending on how they are provided.
- The value employees place on perks often varies by workforce demographics, career stage and individual preferences.
FAQs
What’s the difference between perks and benefits?
Benefits are essential offerings required by law or part of traditional compensation (like pensions or health insurance). Perks are extra rewards that enhance the overall employee experience.
What is the difference between perks and employee benefits?
Employee benefits can include both statutory and employer-provided entitlements, while perks are generally optional extras designed to enhance the employee experience beyond core remuneration and benefits.
Why do organisations offer perks?
Employers often use perks to support employee attraction, engagement and retention, as well as reinforce their workplace culture and employee value proposition.
Do perks affect payroll?
Some perks may have payroll, tax or reporting implications, particularly where they have a financial value or form part of an employee's remuneration package.
Do employees have a right to workplace perks?
Generally, no. Perks are typically discretionary and may be changed or withdrawn by the employer unless they form part of a contractual arrangement or workplace policy.
What are some common workplace perks?
Common examples include flexible working arrangements, wellbeing programs, employee discounts, learning and development opportunities, social events and additional lifestyle benefits.
