The Definitive Guide to Health & Wellness Stipends

From mental health apps, running sneakers, peloton subscriptions and more -- health and wellness stipends are the perfect wellness benefit to satisfy the unique needs of every employee.


Over the past few years, there's been a lot of new information coming out about the many benefits of health and wellness stipends, or wellness spending accounts, for employees. As a people-first company, that truly excites us!

As more companies turn to health and wellness stipends (also called a wellness allowance or wellness spending accounts) to better suit the uniqueness of their team from a well-being perspective, more questions arise. 

That's why we developed the definitive guide to everything you need to know about health and wellness stipends:

Here's what is covered in this guide:

  1. What is a health & wellness stipend?
  2. Examples of health & wellness stipends
  3. Benefits of health & wellness stipends
  4. How to create one for your organization

What is a Health & Wellness Stipend?

First, a definition:

A health & wellness stipend is a sum of money given to employees for them to spend on health initiatives that are relevant to them and support their unique wellness journeys. 

Further details on what they are:

  • They are also called a wellness allowance or wellness spending account.
  • They can cover physical, mental, or financial wellness needs, depending on the type of wellness program you design.
  • They are taxable items. Taxes can be grossed up by the employer or employees can cover the taxes.
  • Stipends can be given out on a monthly, quarterly, semi-annual, or annual basis. 

What they are not:

  • Health Savings Account (HSA)
  • Flexible Spending Accounts (FSA)
  • A health insurance stipend
  • A stipend that is reimbursed through a typical business expense software, as these are taxable purchases.

Examples of Health & Wellness Stipends

Based on research, conversations, and market trends, one thing is clear:

The companies that achieve the most productivity and success are the ones that are most innovative, the most focused on employees’ needs, and the most driven to help the employees succeed at work and in life. 

Companies offering health & wellness stipends:

  • Microsoft offers employees $800 per year 
  • Webflow offers employees $200 per month (through Compt) 
  • Basecamp offers a $100 per month fitness allowance
  • Eventbrite offers workers $60 monthly
  • LoseIt! offers employees a wellness stipend
  • Dating app Hinge offers an exercise stipend

Check out these examples of Health & Wellness Stipends

To the left is an actual health and wellness stipend from Compt customer Webflow.

Webflow gives their team members $200/month to spend on health and wellness items from gym memberships to workout gear to meditation apps.

After analyzing their team's stipend use, they saw employees selected many different types of health perks. 36 unique health and wellness-related perks to be exact, and over 22 different gym memberships!

How could an HR or People Operations professional create a program that supports this diversity of needs? 

This is the power of a perk stipend or lifestyle spending account.


Benefits of Health & Wellness Stipends

Many companies are turning to stipends like Lifestyle Spending Accounts to support their employees in more meaningful ways. 

Benefits of stipends include:

Employees are healthier and happier when stipends are offered.

People can choose what being “healthy” means to them and how to achieve it best. While some people may love hiking outdoors, others may prefer to do group fitness classes. How people get healthy might change over time as well as preferences or their lives change.

Companies save money and get more value out of the money they do spend.

When employers pick perks for employees, employees aren't likely to use them since it’s probably not what they’d pick for themselves. The best employee benefits allow employees to pick their own perks, so only the money used gets spent, and companies don’t waste money on wasted or underutilized perks.

If using software, stipends are easy to manage.

Since HR isn’t picking, piloting, managing, and communicating the many different health and wellness vendors, and it’s in the hands of the employees to get what they want. No need to send out an employee benefits survey — the process can take as little as 30 minutes a month to manage. If using employee perks software like Compt, companies can ensure their investment in employees is 100% tax compliant.

While companies don’t need to offer their employees perk stipends, we've found the most successful companies are doing this today as their go-to lifestyle benefits solution. These are the companies attracting talent and retaining their team because it’s not about what the stipend is but rather what it represents. Stipends represent that an organization trusts employees and wants to support them and their individual needs. 

Check out these other resources on the growing popularity and significance of perk stipends:


Do you know how much budget you're wasting with current perk vendors?

Selecting hundreds of vendors isn't just a lot to manage -- it's EXPENSIVE. We're here to help you save money and still delight every employee (including your CFO!)


How to Create a Health & Wellness Stipend for Your Company

Creating a stipend is an excellent way to offer meaningful employee perks. Not only are they easier to set up, but they’re also easier and less time-consuming to maintain and manage.

Four steps to setting up a stipend:

1. Gather your budget.

Maybe you have an overall budget or a budget per person, but having a budget is a necessary step because that is what you’ll be passing on to your team. 

2. Determine spending timeframes.

Do you want to offer this monthly so you can ensure monthly employee engagement, or do you prefer to offer it on a quarterly, semi-annual, or annual basis? It’s ultimately up to you: if you're unsure or need a little inspiration, check out the examples above in the company examples section.

3. Upload these program details into Compt’s perk management software.

You can also select what date you’d like your perk stipend to begin.

Not a customer yet? Schedule your demo today.

4. Lastly, invite your employees to spend their funds.

Once they receive an invite and activate their account, they can begin spending based on your program's start date.

[Starting with stipends? Check out this detailed guide on how to set up your perk stipend.]


Invest in your people and support their version of well-being.


There are more stipends than just a health and wellness stipend. Do a Google search for “top perks” and tucked inside almost every single list in plain sight are a surprising number of perk stipends.

So what are the other types of stipends or allowances? Below is a list of the most common:


Learn more about the unmatched benefits of employee lifestyle stipends

Download the free eBook to find out why perk stipends (also known as lifestyle spending accounts) are the most budget-friendly and inclusive.


Get with the times. Get Compt.

Everybody's wellness journey is unique. Your employee benefits should be, too! Only with Compt can you reach your whole team and stay within the budget.

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