CONTENTS  Definition Objectives Common fringe benefits Fringe benefits in India    .

house allowances.DEFINITION  Fringe benefit is defined as the compensation in addition to direct wages or salaries.  . paid holidays. Fringe benefit includes company car. medical insurance. pension schemes. subsidized meals etc.

directly or indirectly provided to employees by the employer.  Fringe benefits can also be explained as any privilege.  . Some fringe benefits are regarded as part of a taxable income. service facility or amenity.Contd.

To create and improve sound industrial relations.OBJECTIVES  To recruit and retain the best employee.   . To increase and improve employee morale and create a helpful and positive attitude on the part of workers towards their employers.

Contd.  To provide qualitative work environment and work life.   . To provide security to the employees against social risks like old age benefits and maternity benefits. To motivate the employees by identifying and satisfying their unsatisfied needs.

‡ To satisfy the demands of the trade union.Contd. ‡ To meet statutory requirements. . ‡ To protect the health of the employees and to provide safety to the employees against accidents.

 To promote employees welfare by providing welfare measures like recreation facilities. fringe benefits are called golden hand-cuffs. To create a sense of belongingness among employees and to retain them.  .Contd. Hence.

whether higher-paid or not.COMMON FRINGE BENEFITS  Accommodation Generally any employee. is provided with accommodation either rent-free or for a very low rent.  Company cars and vans Companies usually provides car for official or personal use to an employee in a particular level or above. .

Holidays Higher-paid employees receive a free holiday.  Fuel Fuel is generally provided to higher ranked employees.   . It is a basic reimbursement.Contd. Loans Interest-free and cheap loans for higher-paid employees and directors are given.

  . Overnight expenses If you stay away from home overnight on business and incur personal expenses its reimbursed.Contd. Traveling expenses Employers reimburses the costs of traveling to and from work or pays these direct.  Meals Meals are provided in a staff canteen which are either free or subsidized and are available to all staff.

FRINGE BENEFITS IN INDIA       Payment for time not worked. Workmen¶s compensation. Employee security. Recreational and welfare facilities. Health benefits. safety and health. Old age and retirement benefits. .



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