13-MBAK-10HUMAN RESOURCE MANAGEMENT
Fringe benefit may be defined as
“Compensation in addition to direct wages or salaries,
such as company car, house allowance,
medical insurance, paid holidays, pension schemes,
subsidized meals. Some fringe benefits are regarded part
of a taxable income.
In simple words
“Any nonwage payment or benefit granted to employees
These Benefits can be provided by-
1. YOUR EMPLOYER.
2. AN ASSOCIATE OF YOUR EMPLOYER
3. A THIRD PARTY UNDER AN
ARRANGEMENT WITH YOUR EMPLOYER.
1.To create and improve sound industrial relations
2.To boost up employee morale.
3.To motivate the employees by identifying and satisfying
their unsatisfied needs.
4.To provide qualitative work environment and work life.
5.To provide security to the employees against social risks
like old age benefits and maternity benefits.
6.To protect the health of the employees and to provide
safety to the employees against accidents.
7.To promote employee’s welfare by providing welfare
measures like recreation facilities.
8.To create a sense of belongingness among employees
and to retain them.
Trade Union Demands
To improve human relations
Old Age and
Organizations provide a variety of fringe benefits. The fringe
benefits are classified under heads as given here under:
• Payment for Time Not worked
• Extra Pay for time Worked
• Retrenchment Compensation
• Lay-off Compensation
Gymnasium at Electronics city campus of Infosys at
Bangalore is one of the largest gymnasiums in Asia
and a mini golf course among others ...
They even have boating and saloon facilities in their
campus so that employees can relax and can take
break in their hectic schedules.
Rest and recreation facilities such as a gymnasium,
swimming pool, tennis, basketball and volleyball
courts, in addition to cafeterias offering
Health Club, Fitness Center with a special
enclosure for Aerobics, Golf club.
Well-stocked Library, High speed connectivity,
transportation facilities, stone-laid walking
paths connecting each building (or one can use
the bicycles provided to move around the
Medical facilities, Bank, ATMs, Travel
• Basically, a fringe benefit is a benefit
provided to an employee or an associate (for
example- family, spouse and children)
because of his employment.
• Fringe benefits provide output in terms of
employee loyalty and cooperation, employee
welfare and create organizational image.