This document discusses various types of fringe benefits provided to employees in addition to wages and salaries. It defines fringe benefits as benefits provided by employers that are not directly part of wages, such as health insurance, education allowances, and retirement funds. The document outlines the different types of fringe benefits like social security, welfare facilities, and bonuses. It explains the significance of fringe benefits for workers, employers and society. Factors that influence fringe benefits and various laws governing employee benefits in India are also summarized.

1. Types of services and Fringe Benefits
A Special video session
By Amit Tiwari
Assistant professor
Indian Institute of Tourism and Travel Management , Gwalior

2. Types of Benefits and Services
• Multiple
• Welfare
• Health
• Medication
• Education of wards
• Social obligational supports like marriages,
• House of property
• PPF
• Perks etc (New term )
5/15/2020 Amit Tiwari 2

3. Concept, philosophy and
Definition of Fringe Benefits
• The term ‘fringe benefits’ is of recent origin
and did not come into use until 1950
According to Cockmar Fringe benefits …..
“Fringe benefits are those benefits , which are to
be provided by an employer for the benefit on an
employee and are not in form of wages and
salaries and time related payments”
5/15/2020 Amit Tiwari 3

4. Belcher Defines
“ Any wage cost not directly connected with
the employee’s productive efforts ,
performance, service or sacrifice”
Thus , the benefits provided to the workforce apart from the
negotiated wages are are nowadays termed as either
fringe benefits or supplementary benefits.
However the substance of all these terms is the same.
5/15/2020 Amit Tiwari 4

5. According to the ILO
Wages are often augmented by special cash benefits,
by the provision of medical and other services or by
payments in kind, that form part of the wage for
expenditure on the goods and services. In addition
workers commonly receives such benefits. benefits as
holiday with pay , low cost meals , low rent housing etc.
Such addition to wage proper are some times referred
to fringe benefits.
Benefits that have no relation to employment or wages
should not be regarded as fringe benefits though they
may constitute a significant part of the worker total
income
5/15/2020 Amit Tiwari 5

6. Significance of fringe Benefits
1. Benefits to Workers
• Reduces gap between nominal wages and real wages of
the workers
• Enhances satisfaction level in the workers
• Improve their standard of living
• Maintain their self respect
• Make worker more responsible
• Help in their growth and development
5/15/2020 Amit Tiwari 6

7. 2. Benefits to Employers
• Help in attracting and retaining employees
• Reduce the influence of trade union on workers
• Help in reducing cost of production
• Help in reducing the wastage and depreciation
• Help in increasing output
• Help in improving quality
• Boost the image of the organization
• Help in reducing the rate of absenteeism
• Help in reducing the supervisory expenses
• Improve human and industrial relations
5/15/2020 Amit Tiwari 7

8. 3. Benefits to Society
• Availability of goods and services at
reasonable prices
• Increase in gross national production
• Educational upliftment
• Promotion of peace and harmony
• Improvement in standard of living
• Elimination of social evils
• Reduction of social cost
5/15/2020 Amit Tiwari 8

9. Factors affecting the fringe
benefits
• Organizational Financial health
• Trade Unions bargaining power
• Employer’s philosophy with regard to
fringe benefits
• Employee needs
• Taxation policies
• Statutory requirements
5/15/2020 Amit Tiwari 9

10. Coverage and types of Fringe
benefits
• It should be computable in terms of money
• They Should not be part of any contract,
indicating when the sum is payable
• The amount of payment is not
predetermined
5/15/2020 Amit Tiwari 10

11. Payment benefits under Fringe
benefits
5/15/2020 Amit Tiwari 11
Social
security and
benefits
Labour
welfare
facilities
Bonus

12. Social Security
• Various contingencies of life
• Employment injury
• Occupational diseases
• illness
• Old age
• Death
Are the primary reasons against the social obligation of
family needs , hence the mechanism which can protect
them for all such situation temporarily or permanently as
well , may be called as social security. The provisions of
social securities measures can make workers more
content.
5/15/2020 Amit Tiwari 12

13. Objective of Social securities
To
Compensate
To restore the
earning
capacity
To prevent
the
contingencies
5/15/2020 Amit Tiwari 13

14. Need and Significance of social securities in
Indian Industries (Tourism Industry )
• Indian industrial workers are more
exposed to various contingencies of life
• To waves off status of indebt
• Maintaining the dependent more confident
during the contingency of life
• Self respect , self dignity and Survival
• Restoration of lose of working capital
5/15/2020 Amit Tiwari 14

15. Form of social Securities
Social
insurance
Social
assistance
5/15/2020 Amit Tiwari 15

16. Types of Employee benefits services
(Legal obligation as per act to the organizations )
1. The Employees compensation act, 1923
2. The Maternity benefit act , 1961
3. The ESI act, 1948
4. The Employees provident funds and
Miscellaneous , provisions Act 1952
• Employee Provident Fund scheme
• Employee Pension Scheme 1971, 1995
• Employee deposit linked Insurance Scheme , 1976
5. Payment of gratuity act, 1972
5/15/2020 Amit Tiwari 16

17. Labour Welfare
The maintenance
function of HRM aims
to preserving and
improving physical ,
mental and economic
conditions of
employees as it helps
all the stakeholders
of an organisation.
5/15/2020 Amit Tiwari 17

18. Bonus
• A bonus is a financial compensation that is
above and beyond the normal payment
expectations of its recipient. Bonuses may
be awarded to both entry-level employees
and to senior level executives. Bonuses
may be dangled as incentives to
prospective employees and can also be
distributed to a company's shareholders.
•
5/15/2020 Amit Tiwari 18

19. Thanks for watching for entire
sessions of HRM
The same PPT based video session can be visualized on youtube
https://www.youtube.com/watch?v=94nCt1-cBw0
Further will continue with revision sessions …. Small video
sessions for preparation of exams
5/15/2020 Amit Tiwari 19