In today's competitive job market, offering compelling fringe benefits is crucial for attracting and retaining top talent. It’s not a simple “extra,” that’s why having diverse fringe benefits examples can significantly enhance employee satisfaction and loyalty.
This article will delve into the most popular examples of fringe benefits to offer in 2025, providing HR professionals and people managers with actionable insights to improve their benefits packages and foster a positive workplace environment.
What Are Fringe Benefits?
Before explaining what are examples of fringe benefits, we need to understand the core concept. Fringe benefits are additional compensations provided to employees beyond their regular salary or wages.
These benefits serve as incentives to attract, retain, and motivate employees, enhancing their overall compensation package. They can vary widely and are often tailored to meet the specific needs and preferences of the workforce.
Do you have some in mind already? Here are a few fringe benefits examples:
- Health Insurance: Medical, dental, vision coverage.
- Retirement Plans: 401k (in the US), the SIPP (in the UK), pension plans, profit-sharing plans.
- Paid Time Off: Vacation days, sick leave, personal days.
- Bonuses: Performance bonuses, holiday bonuses, signing bonuses.
- Life and Disability Insurance: Financial protection in case of death or disability.
- Flexible Work Arrangements: Telecommuting, flexible hours, job sharing.
- Educational Assistance: Tuition reimbursement, student loan repayment.
- Employee Discounts: Discounts on company products or services.
- Wellness Programs: Gym memberships, wellness coaching, health screenings.
- Childcare Assistance: On-site childcare, childcare subsidies.
These fringe benefits examples illustrate the various ways companies can enhance their compensation packages, but… Why are they so important? Let’s discover it in the next section.
Why is Offering Fringe Benefits Important?
It can be hard to believe, but according to research by Business Insider, 79% of employees would rather stay in a job where they feel valued, even if it means earning less. Even though monetary compensation is important, Millennials and Gen Z value fringe benefits too. This could be an opportunity to benefit both, the organization and its talent.
These additional compensations, along with small business employee benefits, serve multiple purposes, here’s an exploration of why offering fringe benefits is crucial and the advantages it brings:
- Employee Satisfaction: When employees feel their well-being is valued through comprehensive benefits packages, they are more likely to experience higher job satisfaction.
- Retention: Employees are more likely to stay with a company that offers benefits tailored to their needs, such as commuter benefits, stock options, and profit sharing.
- Enhancing Company Culture: Offering fringe benefits also enhances company culture by promoting a supportive and inclusive environment. Examples of fringe benefits like gym memberships and mental health support demonstrate a company's commitment to employees' holistic well-being.
- Productivity: When employees are healthy, satisfied, and less stressed, their productivity levels naturally increase. For example, flexible spending accounts can reduce the financial stress associated with healthcare costs.
Discover more about creative incentives for employees in our specialized blog.
13 Fringe Benefit Examples
Now we are going to give you a fringe benefits list. Which one should you choose? It depends on the size of your company, budget, and goals. All the fringe benefits examples above are suitable for all kinds of companies, just remember to consider your talent’s preferences and needs.
1. Health Insurance
Health insurance is a fringe benefit that provides employees with coverage for medical expenses, including doctor visits, hospital stays, surgeries, and prescription medications. Many plans also include dental and vision care. Employers typically cover a portion or all of the premium costs, making healthcare more affordable.
Examples:
- Employer-sponsored health, dental, and vision insurance
- Coverage for preventive care, specialist visits, and emergency services
- Flexible plan options (HMO, PPO, High Deductible Health Plans)
- Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs)
Value to Employees:
- Reduces financial stress by covering costly medical expenses
- Ensures access to quality healthcare for employees and their families
- Helps employees maintain their well-being and productivity
Value to Company:
- Attracts top talent and improves retention rates
- Reduces absenteeism by promoting preventive healthcare
- Offers tax advantages since employer contributions are typically tax-deductible
2. Retirement Plans
Retirement plans allow employees to save for their future by setting aside a portion of their income, often with employer contributions. Common options include 401(k) plans (US), SIPP (UK), pensions, and Roth IRAs. Employers typically match a percentage of employee contributions, helping them build long-term financial security.
Examples:
- 401(k) plans with employer matching
- Pension schemes funded by the employer
- Individual Retirement Accounts (IRAs) and Roth IRAs
- Self-Invested Personal Pensions (SIPPs) in the UK
Value to Employees:
- Provides long-term financial security and peace of mind
- Helps employees build a substantial retirement fund with employer contributions
- Encourages financial planning and responsible saving habits
Value to Company:
- Increases job satisfaction and retention by demonstrating long-term investment in employees
- Positions the company as a desirable employer, attracting top talent
- Provides potential tax advantages for employer contributions
3. Paid Time Off (PTO)
Paid Time Off (PTO) includes vacation days, sick leave, and personal days that employees can take while still receiving their regular pay. Some companies like Meditopia offer unlimited PTO, while others provide a fixed number of days per year.
Examples:
- Standard vacation leave and sick leave policies
- Unlimited PTO policies at
- Paid personal or mental health days
- Parental and bereavement leave
Value to Employees:
- Allows employees to rest and recharge, preventing burnout
- Supports a healthy work-life balance
- Increases overall job satisfaction and well-being
Value to Company:
- Improves employee productivity and engagement by preventing exhaustion
- Enhances recruitment efforts by offering a competitive benefits package
- Reduces absenteeism by allowing employees to take planned time off when needed
4. Bonuses
Bonuses are financial rewards given to employees based on performance, company profits, or achieving specific targets. They can be annual, quarterly, or one-time payments and serve as incentives to align employees’ efforts with business goals.
Examples:
- Performance-based bonuses tied to individual or team achievements
- Profit-sharing bonuses distributed when the company meets financial goals
- Holiday or year-end bonuses to reward employees for their contributions
- Signing or retention bonuses for attracting and keeping talent
Value to Employees:
- Provides additional income and recognition for hard work
- Creates a sense of accomplishment and motivation
- Encourages goal-setting and professional growth
Value to Company:
- Increases employee productivity and loyalty
- Aligns employee efforts with business success
- Helps attract and retain high-performing employees
5. Employee Discounts
Employee discounts provide special offers or price reductions on company products or services, or partner brands. Discounts can range from a percentage off retail prices to free or heavily discounted items.
Examples:
- Amazon employee discounts on company products
- Retail companies offering discounts to employees
- Partnered discount programs for travel, dining, or wellness services
- Company perks like free or subsidized software tools
Value to Employees:
- Adds financial savings on everyday purchases
- Enhances employee experience and loyalty
- Encourages engagement with company products and services
Value to Company:
- Boosts sales and brand visibility through internal promotions
- Strengthens company culture and employee satisfaction
- Provides a cost-effective benefit with high perceived value
6. Tuition Reimbursement
Tuition reimbursement programs cover part or all of the costs of further education, including undergraduate or graduate courses, professional certifications, and specialized training.
Examples:
- Employer-paid tuition for job-related degrees or certifications
- Reimbursement for online courses and professional development programs
- Access to platforms like Domestikao Coursera
- Loan repayment assistance for student debt
Value to Employees:
- Encourages continuous learning and career growth
- Reduces financial burden for higher education
- Improves employability and skill development
Value to Company:
- Develops a more skilled and knowledgeable workforce
- Increases employee retention and job satisfaction
- Attracts highly motivated and ambitious candidates
7. Wellness Programs
Wellness programs are one of the most fun wellness activities at work. They may include gym memberships, wellness coaching, health screenings, stress management programs, and access to mental health resources.
Examples:
- Gym memberships and fitness subsidies
- On-site or virtual meditation and mindfulness sessions
- Mental health support through Employee Assistance Programs (EAPs)
- Access to Meditopia’s mental well-being platform, AI-powered SOUL, and mindfulness talks
Value to Employees:
- Encourages better health, reduced stress, and improved mental well-being
- Increases productivity and job satisfaction
- Provides support for mental health and work-life balance
Value to Company:
- Leads to a healthier, more engaged workforce
- Reduces absenteeism and healthcare costs
- Enhances employer branding and company culture
These programs promote physical and mental health, leading to a more productive and engaged workforce. You can count on Meditopia’s all-in-one mental well-being solutions for work.
8. Flexible Spending Accounts (FSAs)
FSAs allow employees to set aside pre-tax dollars for eligible healthcare and dependent care expenses. These accounts help cover costs like medical co-pays, prescriptions, and daycare. This financial flexibility can reduce stress and help employees manage out-of-pocket costs more effectively.
Examples:
- Pre-tax contributions for medical expenses (e.g., co-pays, prescriptions)
- Dependent care FSAs for childcare or eldercare costs
- Use-it-or-lose-it annual spending limits
Value to Employees:
- Reduces taxable income, increasing take-home pay
- Helps manage out-of-pocket healthcare costs
- Provides financial flexibility for medical and dependent care expenses
Value to Company:
- Enhances employee financial well-being and satisfaction
- Supports recruitment by offering a tax-efficient benefit
- Reduces payroll taxes through pre-tax contributions
9. Dependent Care Assistance
Dependent care assistance programs provide financial support for childcare or eldercare expenses. Employers may offer direct subsidies, vouchers, or on-site childcare facilities.
Examples:
- On-site childcare centers for working parents
- Vouchers or reimbursements for daycare and eldercare services
- Tax-advantaged dependent care FSA contributions
Value to Employees:
- Reduces financial stress related to childcare and eldercare costs
- Helps employees balance work and family responsibilities
- Provides peace of mind knowing dependents are well cared for
Value to Company:
- Boosts employee retention and productivity by reducing absenteeism
- Demonstrates commitment to diversity, inclusion, and family support
- Enhances employer branding and workplace satisfaction
10. Commuter Benefits
Commuter benefits offer subsidies or reimbursements for transportation costs, including public transit passes, parking, and ride-sharing services. We talk more about this topic and the tax benefits for employees and organizations in our blog.
Examples:
- Pre-tax savings on public transportation expenses
- Pre-tax savings on public transportation expenses
- Parking reimbursement programs for employees who drive to work
- Ride-sharing and carpool subsidies
Value to Employees:
- Makes commuting more affordable and less stressful
- Encourages cost-effective and sustainable travel options
- Reduces financial burden for employees in high-cost urban areas
Value to Company:
- Improves punctuality and employee retention
- Supports environmental sustainability initiatives
- Offers potential tax benefits for both employers and employees
11. Relocation Assistance
Relocation assistance provides financial and logistical support for employees moving to a new location for work. This can include moving expenses, temporary housing, and travel costs.
Examples:
- Reimbursement for moving expenses (e.g., hiring movers, transportation)
- Temporary housing assistance for newly relocated employees
- Travel and home-finding trips to ease relocation transition
Value to Employees:
- Eases the financial burden of relocating for a job
- Helps employees settle in quickly and focus on their work
- Reduces stress and uncertainty during a major transition
Value to Company:
- Attracts top talent from different locations
- Ensures a smoother onboarding process for relocated employees
- Strengthens employee loyalty and commitment
12. Remote Work Allowance
A remote work allowance is a stipend provided to remote employees to cover costs associated with setting up and maintaining a home office. This includes expenses for high-speed internet, office supplies, ergonomic furniture, and utility bills.
Examples:
- Monthly or annual stipends for internet and utility costs
- Reimbursement for office furniture like desks and chairs
- Technology allowances for monitors, keyboards, and webcams
Value to Employees:
- Saves employees money on work-related expenses
- Improves comfort and productivity in home workspaces
- Increases job satisfaction and company loyalty
Value to Company:
- Supports efficient and productive remote work
- Attracts remote-first and hybrid talent
- Enhances work-life balance initiatives
13. Company Car
A company car provides employees with a vehicle for personal and professional use, often including maintenance, fuel, and insurance costs.
Examples:
- Company-leased or owned vehicles for business and personal use
- Fuel and maintenance allowances for eligible employees
- Eco-friendly vehicle options for sustainability initiatives
Value to Employees:
- Reduces personal transportation expenses
- Provides a valuable perk, especially for frequent travel
- Enhances convenience and flexibility for work-related travel
Value to Company:
- Encourages efficient business travel
- Boosts employee satisfaction and retention
- Strengthens employer branding by offering high-value perks
Which Fringe Benefits Are Tax-Exempt?
After talking about employee fringe benefits examples, we need to mention another important topic: Taxes. Tax-exempt fringe benefits are perks provided by an employer to employees that are not subject to income tax. These benefits are designed to enhance the overall compensation package without increasing the employee's tax burden.
Offering tax-exempt benefits can be a strategic way for employers to attract and retain talent, while also providing meaningful support to employees.
In the UK, several fringe benefits examples are tax-exempt, helping to provide employees with valuable perks without the associated tax liability:
- Pension contributions
- Childcare vouchers
- Cycle to work scheme
- Health screenings
- Relocation Expenses (tax-free up to £8,000.)
In the European Union, tax-exempt fringe benefits to employees can vary by country, but several benefits are commonly recognized across multiple member states:
- Meal vouchers
- Health and safety equipment
- Public transport subsidies
- Professional training
- Childcare support
