Posts: 247
Threads: 124
Joined: Nov 2011
Posts: 247
Threads: 124
Joined: Nov 2011
According to Belcher "fringe benefits arc any wage cost not directly connected with the employees, productive effort, Performance, service or sacrifice."
Features of Fringe Benefits or Differences between Wages
(1) Wages are directly related to the work done and are paid regularly while fringe benefits are those payments or benefits which a worker enjoys in addition to the wages or salary he receives.
(2) Fringe benefits are not given to workers for any specific jobs they have performed but are offered to them to stimulate their interest in their work. They boost the earnings of the employees.
(3) Fringe benefit represents a labour cost for the employer. Everything which a company spends over and above wages is fringe benefit.
(4) A fringe is never a direct reward geared to the output, merit or effort of an employee.
(5) A fringe benefit is enjoyed by all employees. A labour cost should be intended by an employer as a benefit desired by the staff.
(6) If the benefit increases worker's efficiency, it is not a fringe benefit. But if it is given to supplement his wages it is a fringe benefit.
Kinds of fringe benefits
The benefits and services to be included under the title 'fringe benefits' arc numerous. George R.
Terry has enumerated as many as 28 benefits under fringes. A few of them are—Bonus for quality and attendance, contribution to group insurance plans, lay-off and termination, pay, travel expenses, suggestion awards, medical leave with pay, overtime, university and trade courses etc.
The chamber of commerce, U.SA. has included 5 types of benefits under 'Fringe benefits':
(i) Statutory payments such as old age pension, unemployment insurance, group insurance etc.,
(ii) Payments for pension and labour welfare.
(iii) Rest or leave with pay.
(iv) Payment for time not worked, and
(v) Other benefits such as profit sharing, suggestion, reward, reimbursement of tuition fee, festival allowance etc.
