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What are non-mandatory benefits?

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Non-mandatory benefits are those that that employers are not legally required to offer their employees. These types of benefits may vary depending on country and region. For the most part, they’re considered part of employees’ total compensation package and tend to be subject to taxation.

While non-mandatory benefits aren’t required, they are an excellent way to attract and retain workforce talent.

Common types of non-mandatory benefits

  • Educational benefits including career development, training, and tuition reimbursement
  • Time off benefits for things like volunteering, flexible work schedules for new parents, and extended parental leave
  • Health and wellness benefits like gym memberships, mental health support, and wellness programs

Managing non-mandatory benefits for a global workforce

In some ways, non-mandatory benefits can be even more complex than mandatory benefits. In addition to the expected regulatory requirements that companies need to navigate, there’s also the added challenge of navigating and understanding cultural differences in each country. What may be considered a valuable perk in one country may not be as valuable in another. Similarly, while in one country offering a certain benefit may be affordable, in another country it may be more financially challenging.

Companies with global workforces need to take all these factors into account. Often, this means utilizing technology to manage non-mandatory benefits and payroll in multiple countries at once. Certain payment distribution solutions, for example, can offer both local regulatory knowledge as well as expertise in cultural values regarding competitive perks.

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