A competitive salary might be enough to tempt most of us to accept a job, but always check what other employee benefits are available before signing on the dotted line.

Many people consider employee benefits of minimal importance compared with pay and holidays, but it is well worth finding out exactly what is on offer, particularly as much of what might be available through your employer could cost you a fortune if you bought it independently.

An employer-sponsored pension is probably the most important benefit available, regardless of age or situation. Jas Randhawa, of Torquil Clark, the independent financial adviser (IFA), says: “Some employers will contribute as much as 12 per cent into their staff's pensions, but typically this is nearer 5 per cent, which is still a very good.”

Most companies also offer group life cover, which is known as a death-in-service benefit, because it is cost-effective both for employers and employees. This is because the risk is spread over a number of employees, so premiums are cheaper than if individuals buy cover, and employer contributions are usually treated as a business expense for tax purposes.

Another important benefit to look for is private medical insurance (PMI). This is usually offered to employees as a “benefit-in-kind”, in lieu of cash. Company cars are also often offered as benefits-in-kind.

Although benefits-in-kind are not counted as part of an individual's salary, they will be subject to tax. Your employer will use a P11D form to tell the Revenue about the value of any benefits-in-kind that it has given you over the course of the tax year. Employers only have to declare these if you have earned at least £8,500 in the year, including the value of the benefits.

John Dubois, spokesman for AXA PPP, the private medical insurer, says: “If you are offered PMI through your employer, you should take it. For example, a comprehensive corporate PMI policy might cost an employer about £450 a year per employee, and the individual has to pay tax on that as a benefit-in-kind, which would cost about £180 if he or she were a higher-rate taxpayer.

“In contrast, comparable cover on the high street would cost about £1,000 to take out independently, and because it would be paid for out of taxed income, a higher-rate taxpayer would have to earn about £1,600 to cover the cost.

“The reason why individual plans are dearer than their company-paid counterparts is that customers of the former make a lot more claims than customers of the latter. It probably has something to do with the mind-set of individual customers - they have chosen to buy the cover, so they are minded to make the most of it.”

Another big advantage of taking out PMI through a large corporate scheme is that insurers do not usually medically underwrite each scheme member individually. This means that an employee will be able to obtain comprehensive cover even if he or she has a pre-existing medical condition. If you buying cover outside a company scheme, however,

the individual would have to declare any pre-existing medical conditions, which would then be excluded from the policy.

Group income protection cover, which provides an income if an employee is unable to work as a result of illness or injury, is another valuable benefit. Richard Sheppard, of AWD Chase de Vere, another IFA, says:

“As with PMI, employees enjoy lax underwriting and are unlikely to have to undergo a medical before getting cover.”

You are less likely to find critical-illness cover offered by an employer, but again, if it is provided at a discounted rate, it is well worth taking, particularly as you are five times more likely to be seriously ill than to die before the age of 65. This type of cover pays out a lump sum if you have one of a number of specified medical conditions diagnosed. These typically include cancer, heart attack or stroke.

Other useful benefits include cheap or subsidised mortgages or loans, dental cover and childcare costs for working parents. In the case of the latter, employers normally run a scheme with the help of a childcare voucher company, but they can choose to run it themselves. The voucher company will either supply employees with childcare vouchers directly or provide your employer with them for distribution to staff.

You can use childcare vouchers to pay for registered, or approved, childcare. The childcare provider then cashes in the value of the voucher from the childcare voucher company. This tax year, 2007-08, the first £55 a week, or £243 a month, supplied via childcare vouchers is free from both tax and national insurance contributions.

CASE STUDY

Ellen Shaw, left, of Cumbernauld, near Glasgow, found her group critical-illness cover with Aegon Scottish Equitable invaluable when she had breast cancer diagnosed.

The 44-year-old, who has a daughter, Lauren, 20, and a son, Ryan, 16, worked as a customer services adviser for Royal Bank of Scotland for 23 years but took out the cover, as part of a flexible benefits package only four years ago. “My former partner had to take a lot of time off work after a car accident. It made me think that as a single mother, I needed cover,” she says.

“It cost about £3 a month and provided me with a lump-sum payment of £25,000 when cancer was diagnosed.”

The policy comes with benefits such as the Red Arc service, which offers support to claimants. Ms Shaw says: “The Red Arc nurse arranged counselling and even looked on the internet to find places where I could buy wigs when I lost my hair.

“The money was vital, as I have been unable to work for two years, and I'm the only breadwinner. I only wish I had taken out more cover.”

Ask the right questions

Is there an employer-sponsored pension and how much does the company contribute?

Can you provide private medical insurance and can I extend this to my spouse and family?

Do you offer discounted group income protection cover and/or group critical-illness cover?

Is there a sharesave scheme?

What death-in-service benefits do you provide?

Will I be given a company car?

Are childcare vouchers available?

Is your benefits package fixed or flexible?