meaning, defination of fringe benefits,features, needs,Objective, influencing factors, legally required benefits, insurance related benefits, welfare and recreational benefits, employee service benefits.

1. FRINGE BENEFITS
Apurv kumar maurya
MONIRBA ( ALLAHABAD)

2. MEANING & DEFINITION
Belcher defines :
Any wage cost not directly connected with the employees, productive
effort, performance, service or sacrifice
Cockman defines :
Those benefits which are supplied by an employer to or for the
benefits of an employee, and which are not in the form of wages,
salaries and timer-rated payments.

3. FEATURES
Payments of benefits which a worker enjoys in addition to the
wages or salary he receives
These are offered to workers to stimulate their interest in their work
& to make their job more attractive and lucrative for them
It is never a direct reward nor is paid regularly
Offered on the basis of length of service, gender etc.
Longer the employee’s period of service , the larger will be the
fringe benefits enjoyed by him.
Supplementary forms of compensation.

4. NEED
In view of galloping price index & cost of living, these benefits
provide a soother to the employees & their families
To maintain industrial peace & harmony
To inculcate work spirit & dedication among the employees
To retain talented workforce
Taxation laws in INDIA treat benefits as non taxable to the
employee, thereby minimizing his tax liability which makes benefits
preferable to wages.

5. OBJECTIVES
To match growing cost of living with providing the social security &
improve quality of their work-life
To boost employee morale
To provide recreational facilities to promote employee welfare
To attract & retain talent and enhance the organizational
commitment of the employees
To meet requirements of various legislations relating to fringe
benefits
To gain loyalty & cooperation & encourage them to greater
productive efforts

6. INFLUENCING FACTORS
oThe growth and strength of trade unions
oLabor Scarcity & competition for qualified personnel
oRising prices & Cost of living
oRecognition of fringe benefits as non taxable
oMatch these benefits with the competing organizations
oAttracts areas of negotiations when wage and salary are not feasible

7. COMPONENTS-1
SUPPLEMENTAL PAY BENEFITS/ PAY FOR TIME NOT WORKED
1. Paid holidays & vacations – national holidays, Christmas & labor day ; 9-
11 per year. ; “floating holiday concept” ; dependent on service period
2. Sick leave – 12 per year ; organizations buy back unused sick leave time
3. Supplemental unemployment benefits – where periodically plant
shutdowns are common
4. Rest periods – coffee breaks ; to allow workers some mental & physical
diversion from work
5. Leave of absence – refresher course/extended education ;

8.  LEGALLY REQUIRED BENEFITS
1. Social Security – retirements benefits, death benefits, disability payments & health
insurance(all based on years of completion of the service)
2. Unemployment Compensation- 3 eligibility criteria i.e. (i) individual must have been
covered by social security (ii) have been laid off (iii) willing to accept any suitable
employment through state’s unemployment compensation commission
3. Worker’s Compensation – provides sure & prompt income , medical benefits to
work-related accident ; eligible to 3/2 or 2/3 of average weekly wage in case of death
in addition with medical facilities ; employee’s fault doesn't matter

9. OLD AGE AND RETIREMENT BENEFITS
1. Pension Plans – (i)group pension plans (ii) savings plan (iii) defined benefits plan
(iv) defined contribution plan
2. Provident Funds – on attaining superannuation are eligible for 100% of contributions
with interest ; The Employees Provident Fund, Family Pension Fund & Deposit
Linked Insurance Act, 1952 provides institution of Provident Fund for employees in
factories and establishments.
3. Gratuity – at the rate of 15 days wage(average of basic pay) for every completed
year of service ; The Payment of Gratuity Act, 1972 provides scheme of complete
payment of Gratuity by management of factories & establishments employing 10 or
more persons drawing monthly wage upto Rs 2500 per month.
4. Deposit Linked Insurance –if member of EPF dies while in service, his dependents
will be paid an additional amount equal to the average balance during last 3 years in
his account(maximum upto Rs 10000)
5. Medical Benefits – to retired employees & their family members

10.  INSURANCE RELATED BENEFITS :
1. Life insurance
2. Health Insurance – basic hospitalization, surgery, medical insurance for eligible
employees as a group ; major medical coverage to meet high medical expenses
resulted form long-term or serious illness
3. Accident & Disability Insurance – provides a fixed lump-sum benefit when death is
accidental ; in case of accidental loss of limbs or sight also(upto 16 weeks) ; 50-75%
of basic pay ; 1-6 months waiting period required following the disability before he
becomes eligible

11. WELFARE & RECREATIONAL BENEFITS:
1. Educational Facilities
2. Parties & Picnics
3. Canteens
4. Housing
5. Consumer Stores
6. Credit Societies
7. Transportation
8. Holiday Homes
9. Miscellaneous

12.  EMPLOYEE SERVICE BENEFITS :
1. Personal Service Benefits – Counselling Services; Credit Unions; Employee
Assistance Programs; Social and recreational Events
2. Job-Related Service Benefits – Maternity Leave ; Provision for Crèches ; First Aid
appliances ; Elder Care ; Food Services
3. Executives Perquisites – Golden Parachutes ; Key Man Insurance Policy ; Other
Executive Perk.

13. QUESTION TO DISCUSS
“Industrial Worker in India is secured against all social risks from
birth to death.” Do you agree? Give Reasons

14. THANK YOU FOR YOUR TIME