Fringe Benefits

Fringe Benefits

Employees are paid several benefits in addition to wages, salary, allowances and bonus. These benefits and services are called ‗fringe benefits‘because these are offered by the employer as a fringe. Employees of the organization are provided several benefits and services by the employer to maintain and promote employee‘sfavorable attitude towards the work and work environment. It not only increases their morale but also motivate them. These provided benefits and services forms the part of salary and are generally refereed as fringe benefits.

According to D. Belcher, ―Fringe benefits are any wage cost not directly connected with the employees productive effort, performance, service or sacrifice‖.According to Werther and Davis, ―Fringe embrace a broad range of benefits and services that employees receive as part of their total compensation, package-pay or direct compensation and is based on critical job factors and performance‖.

According to Cockman, ―Employee benefits are those benefits which are supplied by an employer to or for the benefits of an employee and which are not in the form of wages, salaries and time rated payments‖. These are indirect compensation as they are extended condition of employment and are not related to performance directly.

Kinds of Fringe Benefits

The various organizations in India offers fringe benefits that may be categorized as follows:

1)                Old Age and Retirement Benefits - these include provident fund schemes, pension schemes, gratuity and medical benefits which are provided to employee after their retirement and during old age as a sense of security about their old age.

2)                Workman’sCompensation - these benefits are provided to employee if they are got ignored or die under the working conditions and the sole responsibility is of the employer.

3)                Employee Security- Regular wage and salary is given to employee that gives a feeling of security. Other than this compensation is also given if there is lay-off or retrenchment in an organization.

4)                Payment for Time Not Worked –Under this category of benefits, a worker is provided payment for the work that has been performed by him during holidays and also for the work done during odd shifts. Compensatory holidays for the same number in the same month are given if the worker has not availed weekly holidays.

5)                Safety and Health –Under this benefit workers are provided conditions and requirements regarding working condition with a view to provide safe working environment. Safety and Health measures are also taken care of in order to protect the employees against unhealthy working conditions and accidents.

6)                Health Benefits –Employees are also provided medical services like hospital facility, clinical facility by the organization.