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DEFINITION:- fringe benefits are those monetary and non-
monetary benefits given to the employee during and post-
employment period which are connected with employment
but not to the employees contributions to the organization.

For example, you could receive a benefit when you:

Ø use a work car for private purposes.
Ø are provided with a cheap loan.
Ø are provided with free private health insurance.
Ø are provided with cleaning services for your private
residence or enter into a salary sacrifice
Need and importance of fringe benefits

Ø To Retain the Employees

Ø Employee Demands
Ø To Motivate Performance
Ø As a social security
Ø Trade Union Demand
Ø Hazards of Industrial Life
Ø Skill shortage

Principles of Fringe Benefit Programe

Ø Satisfaction of Real Need

Ø Flexibility
Ø Proper Communication

Ø Considering the Wishes of Employees

Ø Educate the Workers

Ø Corporate Tool
Ø Participation

Fringe benefit categories

Ø Car fringe benefits

Ø Loan fringe benefits
Ø Debt waiver fringe benefits
Ø Expenses payment fringe benefits
Ø Housing fringe benefits
Ø Airline transport fringe benefits
Ø Living-away-from-home allowance fringe benefits
Ø Property fringe benefits
Ø Car parking fringe benefits
Ø Residual fringe benefit
Fringe benefit in India :-

Ø Payments for time not worked

Ø Statutory fringe benefits
Ø Voluntary benefits
Ø Payments for special duties
Ø Payments for health and security benefits
Ø Other expenditure

Ø Basically, a fringe benefit is a benefit provided to an

employee or an associate (for example- family, spouse
and children) because of his employment.

Ø Fringe benefits provide output in terms of employee loyalty

and cooperation, employee welfare and create
organizational image.