Benefits-in-kind are benefits provided by or on behalf of your employer that cannot be converted into money. This means that when the benefit is provided to the employee, that benefit cannot be sold, assigned or exchanged for cash either because of the employment contract or due to the nature of the benefit itself.  For example, if a driver employed by an employer is provided for the private use of an employee, this will be a benefit-in-kind to the employee. A company car is also a common type of benefit-in-kind.

Please read our articles on how to calculate the value of benefits-in-kind using the available methods and find out which benefits-in-kind are tax-exempt for more information.

Living accommodation is also a type of benefit-in-kind where the employer provides accommodation to the employee. It is subject to a separate Public Ruling published by LHDN. Here is the link to calculate the value of living accommodation.


Perquisites are benefits in cash or in kind which can be converted into money, received by an employee from his employer or from third parties in respect of having or exercising an employment. In the example above, if the driver is hired directly by the employee and the employer reimburses the employee for the cost of employing the driver, then that will be a perquisite to the employee. A travelling allowance is also a common type of perquisite.

You can read this article to find out the list of perquisites that is tax-exempt.

Find out more about our payroll software.


Some frequently asked questions...

Benefits-in-kind refer to non-monetary benefits offered by an employer or on their behalf, which cannot be converted into cash. 

For instance, if an employer provides a company car for the personal use of an employee or accommodation owned or rented by the employer, those qualify as benefits-in-kind.

Perquisites are benefits, whether in the form of cash or non-monetary benefits, that can be monetised, whether they are received by an employee directly from their employer or from external parties in relation to the performance of employment duties. 

Allowances are examples of perquisites, and so is a gift voucher.

Benefits-in-kind are non-monetary benefits provided by or on behalf of an employer that cannot be converted into cash, while perquisites are benefits, whether in cash or kind, that can be converted into money.

For example, if a driver used by an employee is employed by the employer, that will be a benefit-in-kind, but if the employee personally employs the driver and the employer reimburses him for the expense, that will be a perquisite. 

An example of a benefit-in-kind is a company car or accommodation provided by the employer.

An example of a perquisite is a travel allowance or gift voucher.

Yes, living accommodation is considered as a benefit-in-kind where the employer provides accommodation to the employee.

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