Final answer:
Services or rights provided by employers in addition to wages or salary are known as employee benefits, which may include health benefits, retirement plans, and legally required contributions like social security and workman's compensation insurance. These benefits form part of the total compensation package and are sometimes detailed in an employment contract.
Step-by-step explanation:
Services or rights provided by employers in addition to wages or salary are known as employee benefits. These may include a diverse array of offerings such as health benefits, retirement and savings plans, employer payments to Social Security, and insurance coverages like unemployment, worker's compensation, and Medicare. The total compensation an employee receives can be broken down into hourly wages and these additional benefits, which sometimes are referred to as supplemental pay.
Notably, there are benefits that employers are legally required to provide, such as paying into social security, providing workman's compensation insurance, and for some employers, contributing to pension insurance through the Pension Benefit Guarantee Corporation. On the other hand, some benefits, like retirement plans, can be structured as defined benefit or defined contribution plans, offering different advantages for the future financial security of employees.
When entering into an employment contract, it's crucial for the employee to review all terms, including benefits, as these form part of the total compensation and can significantly impact one's financial health and job satisfaction.