Fitness Incentive

Meaning & Definition

A fitness incentive is a benefit or reward that an employer gives to encourage their employees to live a healthier lifestyle. This could include things like having a gym membership, getting reimbursed for wellness programs, participating in a step challenge, or receiving rewards for reaching fitness goals, all as part of the company’s employee wellness program.

Importance of Fitness Incentive 

• Creates a healthier workplace for employees.
• Decreases an employer’s health-related expenses and absenteeism.
• Increases employees’ productivity and confidence while at work.
• Enhances a greater level of job engagement and satisfaction for employees.
• Provides an employer with a culture that promotes employee health and wellness.
• Improves an employer’s overall marketing and retention efforts.

Legal Compliance & Requirements

There is no clear legislative compliance that relates to this terminology; however, the conditions may be subject to individual company HR Policies and taxation under the Income Tax Act, 1961, based upon how reimbursements work.