What are Discretionary Benefits?

Discretionary benefits refer to the range of voluntary benefits that employers choose to offer their employees beyond what is legally required. These benefits encompass various programs and services designed to enhance the overall compensation package provided to employees, contributing to their financial security, health, and wellbeing.

Unlike mandatory or statutory benefits, which are required by law (like social security, unemployment insurance, or workers’ compensation), discretionary benefits are optional and often tailored to meet employees’ specific needs and the organization’s strategic goals.