Compensation and benefits

Compensation and benefits refer to remuneration provided by employers to employees for work performed.

Compensation is the direct monetary payment received for work, commonly referred to as wages. It includes various financial forms such as salary, hourly wages, overtime pay, sign-on bonuses, merit and retention bonuses, commissions, incentive or performance-based pay, and restricted stock units (RSUs).

Benefits refer to non-monetary rewards offered by employers, which supplement base pay and contribute to employee well-being and satisfaction. These benefits may include health insurance, income protection, retirement savings plans, paid time off (PTO), flexible work arrangements (remote, hybrid), health savings accounts (HSA), dependent care assistance, transit benefits, continuing education subsidies, childcare support, work-from-home stipends, meal reimbursements, and employee recognition programs. Benefits, often referred to as indirect compensation, are provided to employees through various plans instead of cash payments. These are including health insurance, retirement or pension plans retirement benefits, vacation time, sick time or other paid time off, flexible work arrangements including remote, hybrid or windowed work, healthcare savings account (HSA), flexible spending account (FSA) for healthcare or dependent care costs, transit benefit account, training or continued education subsidies, childcare subsidies, work from home equipment reimbursement, employee recognition programs, meal reimbursement etc.

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