.svg){kind=logo}
In-kind benefits
A benefit-in-kind (BIK) is any non-cash benefit of monetary value.
In-kind benefits refer to non-cash benefits provided by employers to employees as part of their compensation package. Instead of direct monetary payments, these benefits are delivered in the form of goods or services, often aimed at improving employees' quality of life, job satisfaction, or professional development. In-kind benefits can range from healthcare and housing allowances to company cars and wellness programs.
These benefits are an integral part of employee compensation strategies, helping businesses attract and retain top talent while addressing employees' diverse needs.
Types of In-Kind Benefits
- Health and Wellness Benefits:some text
- Medical insurance coverage
- Gym memberships or fitness programs
- Mental health support services
- Housing and Transportation:some text
- Company-provided accommodation or housing stipends
- Travel allowances or company cars
- Reimbursement for public transportation costs
- Work-Related Perks:some text
- Free or subsidized meals
- Technology and equipment (laptops, mobile phones)
- Training and professional development courses
- Childcare and Education:some text
- On-site childcare facilities or childcare subsidies
- Tuition assistance programs for employees or their dependents
- Recreational Benefits:some text
- Free tickets to events or shows
- Employee outings and retreats
- Access to recreational facilities
- Stock and Equity Options:some text
- Employee stock ownership plans (ESOPs)
- Stock grants or options
Advantages of In-Kind Benefits
For Employees:
- Enhanced Quality of Life: Access to housing, healthcare, and wellness programs improves overall well-being.
- Increased Job Satisfaction: Perks such as flexible working tools and recreational benefits foster a positive work environment.
- Financial Relief: Non-cash benefits can reduce personal expenses, such as housing or transportation costs.
For Employers:
- Talent Attraction and Retention: Comprehensive benefits make organizations more competitive in the job market.
- Improved Productivity: Health and wellness programs boost employee focus and performance.
- Tax Efficiency: Some in-kind benefits are tax-advantaged, reducing the employer’s financial burden.
Tax Implications of In-Kind Benefits
In-kind benefits are often subject to taxation, depending on local laws. For example:
- Taxable Benefits: Company cars for personal use or housing allowances may be considered taxable income for the employee.
- Exempt Benefits: Certain health and wellness benefits, like medical insurance, might be tax-exempt or partially exempt.
- Employer Obligations: Employers must correctly value and report in-kind benefits to comply with tax regulations, which can vary across jurisdictions.
Challenges of Managing In-Kind Benefits
- Compliance Complexity: Tax regulations for in-kind benefits differ by country and sometimes even by region, requiring careful navigation.
- Administrative Burden: Tracking, valuing, and reporting benefits can be time-consuming for HR teams.
- Employee Communication: Explaining the value and usage of non-cash benefits to employees can be challenging.
- Customizing Benefits: Offering a benefits package that appeals to a diverse, global workforce demands thoughtful planning and flexibility.
Best Practices for Offering In-Kind Benefits
- Understand Employee Needs: Conduct surveys or focus groups to identify the most valued benefits.
- Stay Compliant: Work with tax and legal experts to ensure compliance with local regulations.
- Leverage Technology: Use HR software to streamline benefit management and reporting.
- Promote Benefits Effectively: Clearly communicate the full value of in-kind benefits to employees to maximize their impact.
Simplify Global Benefits Management with RemotePass
Managing in-kind benefits for a global workforce can be daunting, but RemotePass makes it seamless. Our platform is designed to handle the complexities of offering and managing benefits for distributed teams, ensuring compliance across borders.
With RemotePass, you can:
- Offer tailored in-kind benefits that cater to the unique needs of your global employees.
- Automate compliance with local tax and labor regulations for non-cash benefits.
- Gain access to expert guidance on structuring attractive benefits packages.
- Provide employees with a user-friendly interface to track and use their benefits.
Related Glossaries
Health insurance
Allows individuals to receive medical, dental, vision, and other medically-related care.
IBAN
IBAN is an acronym for International Bank Account Number.
Tax collection
Tax collection refers to the process by which governments collect taxes from individuals and businesses to fund public services and infrastructure.
Related Articles
How SMBs Can Compete for Top Talent in a Global Hiring Market in 2025
From skills-based hiring and flexible work models to intensifying competition for top talent, discover key trends shaping 2025 and actionable strategies SMBs can use to attract and retain top global talent.
Hear what teams love
about using RemotePass.
Love it! It has been an essential tool for us, the perks of having everything at the point of my fingers. Using RemotePass has been super efficient. The platform is user-friendly and fast, and communication with customer service is truly a "gold standard".
Working with RemotePass has been extremely easy and effortless. The customer support team are second to none - always quick to respond, always helping with desire and delivering perhaps some of the best customer service we have ever encountered. Onboarding new contractors and employees is quick and easy, and we are happy to recommend RemotePass to others
RemotePass has hands down been one of the best (useful and easy to use) platforms I've worked with in the past few years!
RemotePass has been a great success partner for Amwal, it truly enabled us to be international talent friendly. Attracting top talent without the hassle of thinking how we would hire and pay abroad.
RemotePass has really helped us take the pain out of managing salary payments, contract managements, and admin work with our remote teams. They feel much more in control and more connected because of it.
RemotePass is a game-changer for us. It has made managing our remote teams effortless and has greatly improved the process of hiring, managing and collaborating with our team remotely. Highly recommended
We’re delighted to express our satisfaction regarding our collaboration with RemotePass. Their cutting-edge cloud-based platform has revolutionized our workforce and hiring procedures, enabling us to enhance efficiency and effectiveness in managing everything. It serves as a comprehensive solution that has greatly simplified our operations, making remote work effortless.
RemotePass has been so efficient for us as we have at least 60% of our team being remote. Especially for tracking if everyone has been paid out or if they have reimbursements, we don't have to manually do it one by one anymore. It's also really good since we are in compliance with each and every single one of our remote teams' place of residence.
Brilliant service. We love and we'd be using it for the years to come. Also great customer success management as well!
We love the entire system you guys have built, it's user-friendly and in particular we love the automated notifications part. Employees are automatically informed about the payment status and they receive the payment in a couple of hours after they get notified vs. manually asking us. Thanks for your ongoing support
Using RemotePass has been an absolute game-changer for our operations - knowing that we have a reliable partner on our side even in complex regions efficiently (this has previously been a big headache for us), allows our teams to focus exclusively on client service and product delivery
We were looking for a simple and affordable product and RemotePass more than delivered. RemotePass helped us streamline and manage our remote teams. RemotePass understood us as a company and provided us the support and confidence that we are compliant with regulations, our remote teams have excellent support, and that we made the right choice
RemotePass has been very helpful as it streamlines the payment process to our consultants, with a simple 2 to 3 clicks the job is done. It is effortless and straightforward to use. The most important thing is that It eliminates any compliance risks we might face, and the lengthy verification process. Overall the system is excellent, and I would recommend it to other organizations.
The product has been incredibly a game-changer for us as we scaled our team globally. Creating a great first impression when onboarding remote teams. Everything centralized in one place. Love it!
Our work with RemotePass is a partnership based on trust and credibility we are proud to have. With RemotePass services, onboarding and payroll for our global team is well managed and our employees feel safe and cared for.
I was instantly impressed with the UI/UX of the RemotePass platform, it is incredibly user-friendly and the feedback I have received from the remote workers has been excellent. Having supplied contract and remote staff to clients in the Middle East for several years, I have been used to a very manual and labor-heavy process when it comes to payroll and compliance. After one demonstration from the team at RemotePass I switched from using an existing supplier, as I get better value and service using this platform.
.svg)
