What are “Perquisites”?

There are several definitions of perquisites; perhaps the most common is “Any monetary
or other incidental benefit beyond salary; a gratuity; a privilege or possession held or
claimed exclusively by a certain person, group or class.”

These are some of the more common perquisites identified by the Society for Human
Resource Management (SHRM):

• Free/discounted products or services Employees may be eligible for free
products and services or discounts.
• Mobile devices A cell phone, smartphone, personal digital assistant (PDA), or
a laptop may be provided for business needs.
• Professional organizations/certifications Employee membership in professional
associations and fees for professional certifications may be paid.
• Training programs Employer payment for training programs may be available
to many levels of employees.
• Education fees Tuition assistance may be provided to employees. An employer
may pay all or part of an employee’s cost to attend college or university or
technical school classes, allowing employees to continue to expand their
knowledge and skills while working.

Some of the less common perquisites include the following:

• Housing Accommodations or related allowances are awarded to certain
employees; these may be company-owned or company-leased. Allowances may
be a fixed monetary amount or a percentage of the basic salary. The specifics often
depend on the employee level. Furnishings may be provided.
• Company car and/or cash car allowance Cars are typically provided on
a status basis. Some countries offer a car allowance in lieu of a company car. In
addition to the cost of the car, organizations often finance car maintenance, taxes,
and insurance. Fuel costs are typically reimbursed for business purposes (except
for senior executives, where all fuel costs are typically reimbursed).

• Club memberships Entrance fees as well as annual subscriptions for social or
sports club memberships are paid by the employer.
• Meal allowances Lunch vouchers, meal tickets, meal subsidies, or subsidized/
free lunches in the company restaurant/canteen may be granted to employees.

Some additional perquisites include financial and legal counseling and, to a lesser
extent, medical check-ups, vaccinations, and immunizations; subsidized/low interest
loans for the purchase of a house or car; and travel allowances.