contribution in lieu of benefits

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New Member
Can anyone explain to me what does ""Please note that your monthly salary payment includes a contribution in lieu of benefits" mean? Especially the "salary includes a contribution in lieu of benefits" part. I know the meaning of particular words, however it doesn't add up :/
  • Waylink

    Senior Member
    English (British)
    If someone earned 10 euro per hour for 40 hours they would be entitled to 400 euro but the employer might give them 500 euro because the person was entitled to some other benefits that they did not otherwise receive. Perhaps for working unsocial hours, clothing allowance, personal tools allowance, lunch allowance, travel allowance, etc.


    American English
    A "contribution" is usually considered to be voluntary on the part of the contributor and not directly linked to services received. If an employer is providing compensation for lack of benefits such as health insurance or vacation time, that is likely either a result of a government or labor-contract requirement, or something the employer feels compelled to do to get people to work for the organization: it's compensation, not a contribution. Employers and governments may use "contribution" for this kind of payment meretriciously. An example going in the other direction in the US is the "Federal Insurance Contributions Act," which levies a compulsory tax on salaries and wages, not any kind of voluntary payment. Whether the "contribution" in this case is really something that the employer doesn't have to pay but is paying out of sheer altruism, depends on circumstances that have not been described. I would be willing to bet a reasonable amount of money that it's not a contribution at all, and that it just means that you're being paid more than people in the same kind of job who also get "benefits."
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