The word ‘Benefits’, in payroll, is a general expression containing many concepts and meanings. In Hungary, it can take different forms such as:
The option to choose from a menu of benefits offered by an employer.
Employees choose their benefits from a menu of cash and benefits, some of which can be paid for with pretax deductions from wages. This benefit exists in the Hungarian payroll.
Health insurance contributions paid and life insurance deductions taken to provide employees with continuous insurance coverage during their cyclic or academic leave periods.
Compensation other than wages provided to an employee such as health and life insurance, vacations, employer-provided vehicles, public transportation subsidies etc., that may be taxable or nontaxable.
Beside salaries, benefits are also important factors in attracting and retaining talented employees. Companies should consider offering flexible employee-benefit programs that allow their staff to choose benefit packages that are suitable to their needs and lifestyles. For example single workers may prefer travel benefits, married staff may prefer support on a housing loan and older employees may option for health packages.
Employee benefits reflect the company values by encouraging entrepreneurship, new ideas, performance excellence, trust and respect.