The question mark in the picture given below represents a financial incentive. Identify the incentive :
Show Hint
Perquisites are often used to attract and retain high-level managerial talent.
They increase the 'real income' of an employee without necessarily increasing the taxable basic pay.
Look for benefits like "rent-free accommodation" or "conveyance allowance" to identify perquisites.
Step 1: List what the diagram shows. The benefits listed are company provided housing, a car allowance, medical aid and education for children. Step 2: Recall the categories of financial incentives. These include pay and allowances, productivity linked wage incentives, retirement benefits, and perquisites, which are extra benefits given on top of the basic salary. Step 3: Match the listed items to a category. Housing, car allowance, medical aid and education for children are all facilities provided over and above regular pay, which is exactly what perquisites means. Step 4: Rule out the other categories. Pay and allowances refers to basic cash components, productivity linked incentives are tied to output, and retirement benefits apply after service ends, none of which match these day to day extra facilities. Final answer: Option 4, Perquisites.
