What Does Honorarium Mean?


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Nathaniel Hobby Profile
Nathaniel Hobby answered
According to the Oxford English Dictionary, the word ‘Honorarium’ means an honorary award, or a fee that is granted for services rendered, generally services to society. This award is generally given to a person of a profession. It is also known as an ex gratia payment, this is often made to a person for their services in a volunteer capacity or for services for which fees are not traditionally required. An example of which would be the payment to a guest speaker at a conference to cover their travel, accommodation, or preparation time.

Different countries have specific variations of this custom. In Australia payments are made to their sporting coaches in school to honor their services to education and sporting achievement. However, the concept of an honorarium has a tax implication. In Australia recipients of these funds make a tax declaration. This is known as the hobbyist form which is made to the tax office. Therefore, this money does not have to be included in their annual tax return.

In contrast, Canada, an honorarium is considered to be like a salary and therefore is considered a taxable income under the Income Tax Act.  In the case where a gift is substituted for honorarium (gift in lieu of money), it is still classified as a taxable benefit by Canada Revenue Agency. In cases where honorarium is paid to individuals and not to residents in Canada, it is still subjected to an income tax withholding, which is usually about 15%, unless prior approval was obtained from Revenue Canada.

So, though an honorarium is considered a gift granted to services mad to the community, it is still a gift that is subject to taxation and scrutiny by the government.
Aun Jafery Profile
Aun Jafery answered
Honorarium means a kind of gratuitous payment or reward given to services provided by some professional person. There would be no traditional or legal requirement to reward such services with fees of any kind but yet some payment is made or gift presented as a token of appreciation.

The word honorarium comes from the Latin word "honorarium". Honorarium can be defined as some fee that is paid in return for a nominally free service. It can be described as a prize, reward, gift, accolade, guerdon, award etc. An honorarium is a sort of a token of appreciation.

An honorarium can be gifts given to judges who sit and judge events held at educational institutions, like a talent contest held at a school. Another example is a specialist in the field of medicine invited to speak at a convention etc.

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