Welfare expenses refer to the funds extracted from expenses for the welfare of employees. For example, medical and health expenses for employees, subsidies for employees' difficulties, and wages payable to medical and welfare personnel. The employee bonus and welfare fund drawn by foreign-invested enterprises from after-tax profits according to regulations is used to pay employees' non-recurring bonuses (such as special contribution award and year-end bonus) and collective welfare of employees, and is also accounted for in the subject of "welfare expenses payable". When the enterprise pays the above expenses, it will reduce the welfare expenses payable.