Mandatory benefits are benefits that employers are legally required to provide to employees. According toHuman Resource Management, 16th Editionby Gary Dessler, these benefits are established by federal and state laws to protect employees’ economic security and well-being.
Examples of mandatory benefits include Social Security, unemployment insurance, workers’ compensation, and in some cases family and medical leave. Employers do not have discretion over whether to offer these benefits, as failure to comply can result in legal penalties.
Dessler distinguishes mandatory benefits from voluntary or customary benefits, which employers may offer to remain competitive or attract talent. Therefore, mandatory benefits are best defined as thoserequired by law.
Source:
Gary Dessler,Human Resource Management, 16th Edition, Chapter on Employee Benefits and Legal Compliance
