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. Whereas BIK are benefits which are not convertible into money provided for the employee by or on behalf of the employer.
A very simple rule: perquisite involves cash, BIK does not.
Example of perquisite:
- Trinity pays an additional of RM 3,000 to Aishah so that she can hire a driver
- Trinity gives Aishah RM 90,000 to buy a company car
Example of BIK:
- Trinity hires a driver for Aishah
- Trinity buys a company car for Aishah