Car benefits remain an important component of employee pay packages for multinational employers, according to a new study from Mercer.
Its International Car Policies report found that prevalence of company cars, purchase price, annual allowance paid in lieu of a car or to subsidise car-related expenses, eligibility and frequency of additional benefits such as fuel, maintenance and insurance, vary from country to country.
The report also found that car benefits are most prevalent in the Americas and least in Asia Pacific.
They are also prevalent in Europe, the Middle East and Africa (EMEA) but eligibility for the benefit differs by employee level. Slovenia has the highest rate of employers offering car benefits at 100%, followed by Belgium and Hungary at 99%.
David Wreford, principal in Mercer’s Human Capital business, said: “Providing company cars for business use and as part of the benefit package for key employees has been a perk among executives for a long time.
“The need for employee mobility, the globalisation of benefit plans, competitive pressures, business control and relative tax advantages have added to the popularity of this benefit.
“However, as a result of the economic downturn, multinational organisations have been reassessing their car policies along with other benefits as they continue to struggle to manage costs.”
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