Payment of employees in goods or services rather than money. Standard arguments of welfare economics suggest that in the absence of tax-related motives, it is more efficient to pay workers in money and allow them to choose what to buy. If they choose the same goods as they would have received in kind, they are no worse off, and if they choose any other set of goods they are better off with cash payment. In the UK payment of wages in kind is illegal, but many fringe benefits are provided in kind. Tax rules may make this privately beneficial, if it attracts less tax than a cash payment of equal value.