payment in kind

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A payment that is not made in cash but in goods or services. It is often in the form of a discount or an allowance, e.g. cheap fares for British Airways employees, staff prices for food at supermarkets, etc. Now regarded as a bonus or fringe benefit, payment in kind in the 19th century was widespread; the Truck Acts 1831 were passed to discourage employers who insisted on paying their employees in goods instead of cash (as often the cash value of goods bought in bulk by the employer was much less than their value to the employee).

Subjects: Financial Institutions and Services.

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