The business offers benefits in addition to those legally required to employees and these benefits are clear and documented

What does this mean?

  • This could also be seen as a type of living wage, i.e. including certain benefits in an employee’s package which could improve their living conditions.
  • It is important that all such benefits are documented in writing and that they are distributed on an equitable and transparent basis.
  • When giving your employees such benefits, it is crucial to explain these in detail to your employee so that they understand how they are benefiting them and also how they are calculated.

What do I do?

  • Benefits you include cannot be those required by law in any case.  We are talking here about benefits beyond this, for e.g. medical aid, funeral benefits for employees and their families, pension, contribution to higher education for their children, food parcels, food allowance or meals, provision of transport, annual bonuses, etc.
  • Read this interesting article about employee benefits:

http://www.iol.co.za/business/personal-finance/columnists/bruce-cameron/well-structured-employee-benefits-are-good-for-workers-and-profits-1.1487419#.UoOp8Pkms0E

  • What they point out is teaching an employee to manage their wage and budget is more important than just giving them a benefit they don’t understand or does not increase their quality of life.