Mandatory benefits vs. optional benefits: understand the difference

In the world of human resource management, the choice between mandatory benefits vs. optional benefits is a game changer for companies looking to attract talent.

As well as complying with legislation and, at the same time, building a competitive organizational culture.

With the job market constantly evolving, understanding the nuances between these two types of benefits isn't just a matter of legal compliance.

But it's also a strategy to stand out in a scenario where employee experience is valued as much as salary.

Find out more below:

Mandatory benefits vs. optional benefits

Why, after all, should companies invest time and resources in differentiating between mandatory and optional benefits?

The answer lies at the intersection of compliance, engagement and competitive advantage.

While the benefits Mandatory services ensure that the company operates within the law, optional services have the power to transform employees' perception of the value the organization offers.

Let's dive into this topic, unraveling its layers with practical examples, an enlightening analogy, and data that reinforce the relevance of the subject.

What are mandatory benefits?

You mandatory benefits are those required by law, whose offer is non-negotiable for companies that operate formally.

In Brazil, the Consolidation of Labor Laws (CLT) establishes a series of labor rights that include, for example, the payment of the 13th salary, paid vacation with an additional 1/3, the Severance Indemnity Fund (FGTS) and social security contributions.

These benefits are not optional; they are pillars that support the employment relationship and protect workers against abuse or negligence.

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Furthermore, the mandatory nature of these benefits reflects the State's social commitment to guaranteeing minimum conditions of dignity at work.

However, what many companies don't realize is that simply meeting these requirements doesn't differentiate them in the market.

Imagine an orchestra where all the musicians play the same basic score: the sound is correct, but it lacks shine, it lacks soul.

Thus, the mandatory benefits are the minimum score, essential, but insufficient to enchant.

It is worth noting that failure to comply with these obligations can lead to serious consequences, such as fines, labor lawsuits, and damage to the company's reputation.

A 2023 study by the National Confederation of Industry (CNI) revealed that 68% of Brazilian companies faced some type of penalty for labor irregularities in the last five years, many of them related to the mismanagement of mandatory benefits.

Therefore, ensuring compliance is the first step, but stopping there is missing the opportunity to go further.

What are optional benefits?

On the other hand, the optional benefits are those that the company chooses to offer, going beyond legal requirements.

These include everything from health and dental plans to assistance with education, home office, mental well-being, and even partnerships with gyms and streaming platforms.

These benefits are strategic tools that reflect the company's values and its vision of the employee's role in its success story.

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Think of optional benefits like the seasoning on a dish: while the basic ingredients (mandatory benefits) ensure the meal is edible, it's the seasoning that makes it memorable.

For example, a technology company in São Paulo implemented a “Learning Fridays” program, where employees dedicate half a day to courses of their choice, paid for by the organization.

This benefit not only increased employee satisfaction, but also increased talent retention by 22% in two years.

Additionally, optional benefits have a direct impact on an employee's perception of value.

They signal that the company doesn't see its employees just as resources, but as partners in a larger project.

However, choosing these benefits should be strategic: offering something that doesn't resonate with the team's needs can be as ineffective as offering nothing at all.

The key is to listen to employees and align the benefits with the organization's culture and objectives.

Mandatory benefits vs. optional benefits: what's the practical difference?

The difference between mandatory benefits vs. optional benefits goes beyond mandatory. While the former are a legal requirement, the latter are a strategic choice.

This distinction directly impacts cost management, talent attraction, and building a strong employer brand.

To illustrate, consider a small retail company that offers only the basics required by the Labor Code.

It complies with the law, but faces high turnover because employees don't feel valued.

A competitor that adds benefits such as cultural vouchers or flexible hours can attract more engaged professionals, even with similar salaries.

Furthermore, another crucial point is the financial impact.

Mandatory benefits represent a fixed cost, often high, especially for small and medium-sized companies.

Optional features allow for greater flexibility, as they can be adjusted to the organization's budget and priorities.

For example, a Florianópolis startup chose to offer extended 30 days of paternity leave, an optional benefit that costs less than a corporate health plan but has had a positive impact on the company's image and employee satisfaction.

To clarify further, see the table below, which compares the two types of benefits in different aspects:

Aspect	Mandatory Benefits	Optional Benefits
Nature	Required by law (e.g., 13th salary, FGTS, paid vacation).	Chosen by the company (e.g.: health plan, cultural voucher, education assistance).
Cost	Fixed and predictable, part of the labor budget.	Variable, adjustable to budget and priorities.
Impact on the employee	It guarantees basic rights, but does not differentiate the company.	Increases engagement, satisfaction and talent retention.
Flexibility	None; must be offered in accordance with legislation.	High; can be customized and adapted to the team's needs.
Practical example	Payment of additional 1/3 during vacation.	Wellness program with online therapy sessions.

Why invest in optional benefits?

Investing in optional benefits isn't just a matter of generosity; it's a business strategy.

In a market where 74% of Brazilian professionals consider benefits a decisive factor when choosing a job (according to a Catho survey, 2024), offering something beyond the basics can be the difference between attracting exceptional talent or losing them to the competition.

Additionally, well-chosen benefits can reduce indirect costs, such as those associated with turnover or absenteeism.

Consider the analogy of a garden: the required benefits are soil and water, essential for plants to grow.

Optional benefits include extra nutrients, such as fertilizers or careful pruning, which make plants bloom exuberantly.

A company that invests in both creates a more attractive “garden” where employees want to stay and thrive.

For example, a consulting firm in Belo Horizonte implemented an internal mentoring program as an optional benefit, resulting in a 15% increase in team productivity in six months.

Additionally, optional benefits can be a powerful tool for reinforcing organizational culture.

They allow the company to demonstrate its values in practice, whether through sustainability initiatives, supporting diversity, or focusing on well-being.

The question is: is your company just surviving in the talent market or is it truly thriving?

How to balance mandatory and optional benefits?

The balance between mandatory benefits vs. optional benefits requires planning and strategic vision.

First, it is essential to ensure that all mandatory benefits are in compliance with the law, as any failure in this area could compromise the company's operations.

Next, the organization must map the needs and expectations of its employees to determine which optional benefits offer the best return on investment.

A common mistake is adopting optional benefits without considering the team's profile.

For example, offering a gym membership may be irrelevant to a team that values flexible working hours more.

Here, tools such as internal surveys and focus groups can be valuable allies.

Furthermore, communication is essential: there's no point in offering incredible benefits if employees don't know how to access them or don't understand their value.

Finally, financial balance is a determining factor.

Optional benefits must be sustainable in the long term, avoiding promises that the company cannot keep.

The following table provides a practical guide for making strategic decisions within this balance:

Stage	Action	Example
1. Ensure compliance	Audit mandatory benefits to avoid irregularities.	Hire a consultant to review FGTS and 13th salary calculations.
2. Map needs	Conduct employee surveys to identify priorities.	Discover that 60% of the team prefers home office to transportation vouchers.
3. Plan your budget	Set budget percentage for optional benefits.	Allocate 10% from the payroll to benefits such as health insurance and childcare assistance.
4. Communicate benefits	Create internal campaigns to explain and highlight the benefits.	Send monthly emails highlighting how to access the wellness program.

Frequently Asked Questions

To further clarify the topic, the table below answers the most common questions about mandatory benefits vs. optional benefits, offering practical and direct insights:

Question	Response
What benefits are mandatory in Brazil?	They include 13th salary, FGTS, paid vacation with additional 1/3, INSS and, in some cases, transportation vouchers.
Do optional benefits increase talent retention?	Yes, benefits aligned with team needs can reduce turnover by up to 20%, according to HR studies.
How to choose relevant optional benefits?	Conduct internal surveys and analyze team profiles to identify priorities, such as flexibility or well-being.
Can small businesses offer optional benefits?	Yes, low-cost options like flexible hours or local partnerships are viable and effective.
What happens if a company doesn't pay mandatory benefits?	You may face fines, labor lawsuits, and reputational damage, in addition to compromising employee trust.

Conclusion: The power of a well-planned strategy

The dichotomy between mandatory benefits vs. optional benefits It’s not just a matter of complying with the law or offering “extras.”

It's an opportunity for companies to position themselves as employers of choice, balancing compliance, strategy, and employee care.

While mandatory benefits form the foundation of any employment relationship, optional benefits are the bridge to building engagement, loyalty, and a vibrant organizational culture.

By investing in well-planned optional benefits, companies not only attract talent but also create an environment where employees feel valued and motivated.

The challenge is to find the right balance, ensuring that each benefit offered, whether mandatory or optional, contributes to the organization's objectives and the team's well-being.

After all, in a world where talent is the greatest asset, why not turn benefits into a competitive advantage?