Fringe Benefits Definition

• Fringe Benefits refer to the extra benefits provided to employees in addition to the normal compensation paid in form of wage or salary.
• Many years ago the benefits labeled under fringe benefits were relatively insignificant or fringe components of compensation, but now have become important part of compensation package.

Main Features of Fringe Benefits:

• They are supplementary form of compensation.
• They are paid to all employees (unlike incentives to employees whose work is above standard) based on their membership in the organisation.
• They are indirect compensation as they are usually extended as condition of employment and not directly related to performance.
• They help in raising living conditions of employees.
• They may be statutory or voluntary. PF-Statutory, TA- Voluntary benefit.