Question

Oscar claims that employee benefits have little impact on lifetime income so one should only consider a job with the largest salary. Which statement about his claim is true?

1.He is correct because a larger salary would allow one to save more money for retirement.

2.He is correct because benefits have no monetary value to an employee even though the employer may pay for them.

3.He is incorrect because health insurance will save the employee money he could apply to retirement.

4.He is incorrect because the employer gives the money for benefits directly to the employee so the employee can use the money as he wishes.

Answer 1

Only the first statement is true.

Further discussing the other three statements, let us examine why they are wrong.

2. Benefits do have monetary value, for example the company gym and health insurance means that the employee do not need to pay out of their pocket for these benefits.

3. Health insurance does save money, but not in the way that it is applied to retirement. Furthermore, what if it is not a workplace related incident?

4. This is false. The employer uses money to invest in benefits such as company gyms and cars and such for the use of the employee. Money is not directly given to the employees.