Compensation and benefits refer to remuneration to employees from employers. Which is the payments or rewards provided to an individual for the work that has been completed.
Compensation is the direct monetary payment received for work performed, commonly known as wages. This is the compensation that employees earn for their work or contributions to the organization. This term may also denote a structured method in which employees receive financial compensation and additional benefits in return for their labor and contributions.[1] Compensation can be any form of monetary such as salary, hourly wages, overtime pay, sign-on bonus, merit bonus, retention bonus, commissions, incentive pay or performance-based compensation, restricted stock units (RSUs) and etc [2]
Benefits are any type of reward offered by an organization that is classified as non-monetary (not wages or salaries). These rewards are typically funded fully or partially by the employer. Employee benefits refer to the extra advantages offered to employees in addition to their salary. These consist of packages provided by the employer to enhance the cash compensation. Benefits typically encompass health coverage, income protection, savings, and retirement programs, all of which offer security for employees and their families.[3] 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 and etc.