When it comes to attracting and retaining top talent, salary is only part of the equation. Today's employees are weighing the full value of a compensation package, and in-kind benefits are playing an increasingly important role.
These non-cash perks — like gym memberships, meal vouchers, health insurance, or company cars — can boost employee satisfaction, improve retention, and help your company stand out in a competitive market.
In fact, a recent SHRM analysis found that 59% of U.S. job postings now mention at least one benefit, up from under 40% in early 2020. That surge shows employers understand that candidates evaluate more than just base pay.
So, which perks are worth offering? And how do you make them meaningful, compliant, and cost-effective — especially across borders?
Key Takeaways:
- In-kind benefits can elevate your total compensation package and help differentiate your company in a crowded hiring landscape.
- Choosing the right benefits requires balancing employee preferences, local compliance requirements, and overall cost.
- Not all benefits are treated the same. Some may be taxable or reportable depending on where your team is located.
What Are In-Kind Benefits?
In-kind benefits, also known as fringe benefits or non-cash benefits, are perks employees receive on top of their salary. Instead of extra cash, they come as goods, services, or allowances that improve the overall work experience.
Some benefits-in-kind are tangible, like home office equipment or daily meals. Others are services or stipends: think gym memberships, wellness programs, childcare, or professional development. Many take the form of reimbursements for expenses like commuting, housing, or groceries.
Though they vary by industry and geography, in-kind benefits offer employees real value, giving companies a competitive edge. They support work-life balance, strengthen company culture, and signal that you're a people-first organization.
But beyond goodwill, what makes these benefits truly impactful for your business? Let's dig into the advantages.
What Are the Advantages of Providing In-Kind Benefits?
When thoughtfully chosen and fairly administered, in-kind benefits can strengthen your hiring strategy, improve employee retention, and support employee engagement at scale. Here's how:
- They enhance employee satisfaction and employee well-being. Perks like access to healthcare, childcare support, and wellness stipends reduce stress and show employees you care about their lives beyond work. That contributes to a more energized, motivated, and resilient team.
- They reduce turnover. Employees who feel supported generally report higher job satisfaction and are likelier to stay. Offering unique or hard-to-find perks, like mental health resources or coworking memberships, can increase loyalty and reduce churn.
- They give you a hiring edge. A strong benefits package, especially in remote or competitive markets, signals that your company is stable, people-focused, and worth joining. In fact, one survey found that close to half of employees (49%) chose their current employer specifically for its benefits package, and over half (54%) stayed with their employer for the benefits.
- They promote inclusivity and flexibility. Benefits like flexible working, location-based allowances, or learning stipends help level the playing field across regions and roles, giving more employees the tools to succeed.
In-kind benefits play a key role in shaping a happier, more loyal, and more productive workforce. But which ones are the most effective, and how do you choose?
What Are Common In-Kind Benefits?
There's no one-size-fits-all approach to in-kind benefits. The best options for your team will depend on factors like location, role, company size, and budget. That said, some types of non-cash compensation are widely used across industries and offer broad appeal.
Here are 10 common examples of in-kind benefits employers should consider offering.
1. Health Insurance
Health coverage remains one of the most valued benefits worldwide. In some countries, it's mandatory; in others, it's a major differentiator. Offering supplemental or private health insurance can help employees access better care and build trust in your organization. It also can improve retention and make your company stand out in competitive hiring markets. Plus, it’s often a key factor in a candidate’s decision to accept or decline an offer.
2. Retirement Contributions
From pension contributions to 401(k) matching, retirement plans demonstrates to employees you're invested in their long-term financial security. These benefits may be required in some jurisdictions or can be offered voluntarily as part of a competitive package. Offering strong retirement support can also boost employee loyalty and attract experienced professionals who prioritize financial planning for their future.
3. Childcare Support
Whether through direct subsidies, onsite daycare, or flexible spending accounts, childcare benefits can be a game-changer for working parents, especially in regions with limited access to affordable care. These benefits not only ease the financial burden but also improve employee retention and productivity by reducing stress and absenteeism related to childcare challenges.
4. Gym Memberships or Wellness Stipends
Physical and mental health are foundational to employee performance. A gym stipend, yoga reimbursement, or mental health support can go a long way toward promoting balance and preventing burnout. Even simple offerings like meditation app subscriptions or access to virtual therapy can signal that your company truly values employee well-being, boosting morale and loyalty in the long run.
5. Meal Vouchers or Food Allowances
Popular in parts of Europe and Latin America, food-related benefits like free meals are often tax-advantaged and appreciated by employees. Options include prepaid meal cards, cafeteria access, or a monthly lunch stipend. These perks can also foster team connection and productivity by encouraging shared mealtimes and reducing time spent away from work.
6. Company Car or Transportation Allowance
If the job involves a lot of travel or the area doesn't have a great public transit system, providing employees with a company car or covering their transportation costs can be a thoughtful and appreciated move. It helps reduce the stress and expense of commuting, and can even boost punctuality and job satisfaction, especially in roles where being on the move is part of the job.
7. Commuter or Parking Reimbursement
For office-based or hybrid teams, offsetting the cost of commuting is a simple way to reduce friction and make in-office days more appealing. Whether it’s a public transit pass, parking reimbursement, or a monthly travel stipend, these perks can ease the burden on employees’ wallets and encourage more consistent attendance.
8. Coworking Space Memberships
For remote-first companies, offering a local coworking membership helps remote employees stay productive and connected, especially if they don't have a dedicated home office setup. It also fosters a sense of routine, reduces feelings of isolation, and gives employees access to professional amenities they might not have at home.
9. Professional Development Stipends
Covering courses, certifications, or conference attendance empowers employees to grow in their roles and signals your commitment to their career path. It also helps keep your team’s skills sharp and relevant, which benefits both individual employees and your organization’s overall success.
10. Housing or Relocation Support
Especially relevant for distributed teams or international hires, housing stipends or relocation assistance can ease transitions and demonstrate support during major life changes. Providing this kind of help not only reduces stress for employees but also demonstrates that you're invested in setting them up for success from day one.
Are In-Kind Benefits Taxable?
Sometimes. It depends on your employees' location and how the benefit is structured.
In many countries, in-kind benefits count as part of total compensation and may be taxable for the employee, the employer, or both. Some are fully taxed, others partially, and some may be tax-exempt below certain thresholds.
Common examples of taxable benefits include:
- Company cars for personal use
- Housing stipends or free lodging
- Meal vouchers over a monthly limit
- Stock options and equity grants
- Relocation assistance (in some cases)
Benefits that are often non-taxable or partially exempt include:
- Health insurance premiums
- Retirement contributions within legal limits
- Wellness perks under a capped amount
- Job-related educational assistance and development
- Remote work stipends or equipment
For employers, some benefits are deductible business expenses; others may add payroll income tax obligations.
The bottom line: a tax-free perk in one country might be heavily taxed in another. Always check local laws or work with a partner like RemoFirst to ensure your benefits remain compliant and cost-effective.
How Do I Report In-Kind Benefits?
In-kind benefits typically count toward an employee's total compensation, meaning they often must be reported for tax purposes. While reporting requirements vary by country, here's what employers generally need to do:
- Assign a fair market value: Estimate what the benefit would cost if the employee paid for it themselves.
- Include it in payroll reporting: Many jurisdictions require the value of taxable benefits to appear in payroll records or on employee payslips.
- Apply the correct tax treatment: Some benefits are taxed through payroll deductions, while others are handled separately. You'll need to know who bears the tax burden: employee, employer, or both.
Because reporting rules can differ widely (and change frequently), it's best to work with a local payroll expert or an Employer of Record (EOR) like RemoFirst. They'll help ensure your benefits are classified and reported correctly so you stay compliant and avoid costly penalties.
Which In-Kind Benefits Should I Provide to My Employees?
There's no universal checklist when it comes to in-kind benefits. The "right" mix depends on your team's needs, your company's goals, and the local context of where your employees live and work. That said, a few guiding principles can help you make smart, scalable choices.
- Start with your budget: Some perks (like professional development stipends or wellness reimbursements) are cost-effective and widely appreciated. Others (like company cars or relocation support) carry a higher price tag and may only make sense in specific situations.
- Prioritize fairness across regions: Not every benefit is treated equally in every country. A gym membership might be tax-free in one location but taxable in another. To avoid inequity, opt for flexible benefits that offer equivalent value globally.
- Ask your team: A quick survey can help you avoid guesswork and focus your resources on perks people actually want.
- Think beyond taxable perks: Some of the most desirable benefits — like flexible hours, remote work options, or extra paid time off (PTO) — aren't taxed at all. However, they can have an outsized impact on retention and morale.
Manage Employee Benefits with RemoFirst
Offering great in-kind benefits is just half the battle — the real challenge is managing them properly and staying compliant across multiple countries. That's where RemoFirst comes in.
As an EOR, RemoFirst enables companies to employ talent in 185+ countries without setting up a local entity. We handle everything from onboarding and payroll to taxes and benefits administration, so you can focus on growing your team, not getting buried in compliance paperwork.
Whether offering wellness stipends in São Paulo or relocation support in Berlin, RemoFirst ensures your benefits strategy is employee-friendly and legally sound.
Schedule a demo today to see how RemoFirst can help you build a globally competitive benefits program.
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