Perquisites – Facts you must know.
What is meant by Prequisites?
Benefits that may be converted into money that an employee receives from his employer or other parties in exchange for having or exercising employment.
Perquisites have monetary value, meaning benefits that can be sold, transferred, or converted into cash.
The examples are :
- Tips From Waiter/Waitress
- Annual Dinner Reward
Some other benefits that are not considered prequisites are known as Non-Prequisites. These are benefits that are only subject to personal reasons and not related to work and tax.
The examples are :
- Wedding Gifts
- Rewards for excellent grades in professional examinations
- Extraordinary Achievement Rewards
Prequisites vs Benefit In Kind
| Types | Prequisites | Benefit In Kind |
| Definitions | Cash or in-kind income, that transferable from an employer or a third party | Not transferable into employee financial benefit |
| Examples | – Employer pays an additional RM 1,000 to an employee so that she can hire a driver | – Employer hires a driver for employee |
| – Employer gives an employee RM 50,000 to buy a company car. | – Employer buys a company car for an employee. |
