Employee benefits are forms of compensation beyond base salary that employers provide to workers. For municipal employees, benefits typically include health and dental insurance, pension contributions, paid vacation, sick leave, and sometimes additional perks like professional development funds or fitness subsidies. Benefits represent a significant cost beyond salaries—often adding 20-40% to total compensation costs. Municipal benefit packages, particularly pension plans, have become contentious issues as costs rise and taxpayers question their generosity compared to private sector norms. Collective agreements between municipalities and unions typically specify benefit entitlements.