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Fringe Benefits

Financial Incentives are given to employees to work is above standard Fringe Benefits are given to all employees based on their membership in the organization Different terms are used to denote fringe benefits. They are welfare measures, social charges, social security measures, supplements, sub-wages, employee benefits etc. In addition workers commonly receive such benefits as holiday with pay, low cost meals, low-rent housing etc. Such additions to the wage proper are sometimes referred to as fringe benefits

Payments, in addition to the wages and salaries, that an employee receives Do not depend on the jobs performed They represent labour costs for the employer Not linked to effort, output or merit of a worker Benefit desired by the employees Incurred to finance an employee benefit

Keep in line with prevailing practices in the industry Recruit and retain the best personnel Provide for the needs of employees and protect them against the hazards of life Increase and improve employee morale Make the organization a dominant influence in the lives of the employees with a view to gaining their loyalty and cooperation Improve and furnish the organizational image Recognise the trade unions bargaining power

Factors influencing fringe benefits

Rising cost of living Fringe benefits present attractive areas of negotiation when salary increases are not feasible Pressure placed on competitors to match the match the benefits given Rapid industrialization and heavy urbanization Growing volume of labour legislation Growth and strength of labour unions Labour scarcity and competition Benefits of increased productivity should go to the employees

Criteria for benefits

Cost The ability to pay The needs of the employee The bargaining strength of the trade union Tax considerations Public relations Social responsibility The reactions of the employees

Establish benefit objectives Assess environmental factors

Assess competiveness

Communicate benefit information

Control benefit costs and evaluation

Types of benefits
For Employment Security :
Benefits under this head include unemployment, insurance, technological adjustment pay, leave travel pay, overtime pay, level for negotiation, leave for maternity, leave for grievances, holidays, cost of living bonus, call-back pay, lay-off, retiring rooms, jobs to the sons/daughters of the employees and the like.

For Health Protection:

Benefits under this head include accident insurance, disability insurance, health insurance, hospitalization, life insurance, medical care, sick benefits, sick leave, etc.

For Old Age and Retirement:

Benefits under this category include: deferred income plans, pension, gratuity, provident fund, old age assistance, old age counseling , medical benefits for retired employees, traveling concession to retired employees, jobs to sons/daughters of the deceased employee and the like

For Personnel Identification, Participation and Stimulation:

This category covers the following benefits: anniversary awards, attendance bonus, canteen, cooperative credit societies, educational facilities, beauty parlor services, housing, income tax aid, counseling, quality bonus, recreational programs, stress counseling, safety measures etc

Classification of benefits
PAYMENT FOR TIME NOT WORKED : Benefits under this category include sick leave with pay, vacation pay, paid rest and relief time, paid lunch periods, grievance time, bargaining time, travel time etc. EXTRA TIME FOR TIME WORKED: This category covers benefits such as premium pay, incentive bonus, shift premium, old age insurance, profit sharing, unemployment compensation, deewali or pooja bonus, food cost subsidy, housing subsidy, recreation etc. EMPLOYEE SECURITY: Provided with the benefits of confirmation of the employee on the job creates a sense of job security. Further, a minimum and continuous wage or salary gives a sense of security to life. SAFETY AND HEALTH: In India, the Factories Act, 1948,stipulated certain requirements regarding working conditions with a view to providing a safe working environment.