Fringe benefits

Unit-4
• 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.
• The term fringe benefits refers to various extra
benefits provided to employees, in addition to
the compensation paid in the form of wage or
salary.
• Balcher defines these benefits as any wage
cost not directly connected with the
employees productive effort, performance,
service or sacrifice.
• For example, you could receive a benefit when you:

• use a work car for private purposes.

• are provided with a cheap loan.
• are provided with free private health insurance.
• are provided with cleaning services for your private
• residence or enter into a salary sacrifice
• arrangement.
Need and importance of fringe benefits
• To Retain the Employees
• Employee Demands
• To Motivate Performance
• As a social security
• Trade Union Demand
• To improve human relations
• Skill shortage
 Objectives
• To create & improve sound industrial relations.
• To boost up employee morale.
• To motivate the employees by identifying &
satisfying their unsatisfied need.
• To provide qualitative work environment &
work life.
• To provide security to the employees.
• To protect the health of the employees & to
provide safety to the employees.
• To meet the requirements of various
legislations relating to fringe benefits.
 Factors influencing Employee benefits
• Absolute & per capita cost of fringe benefits.
• Organization financial ability to provide the benefits.
• Employee deficiencies or needs.
• The bargaining strength of trade unions.
• Tax benefits to the organization & individual
employees.
• Need for building public image for the organization.
• Employee reactions to benefits.
Fringe Benefits in TCS
Health Insurance
(19.4k)

Work From Home

(14k)

Cafeteria
(13.8k)

Gymnasium
(10.7k)

Soft Skill Training

(12.3k)

Job Training
(10.8k)

Free Transport
 Education Assistance
(6.9k)

Team Outings
(5.4k)

International Relocation
(4.3k)

Child care
(2.9k)

Free Food