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Fringe Benefits

Fringe benefits are non-monetary forms of compensation provided to employees in addition to their regular wages or salaries. These benefits are often provided in the form of goods or services, but may also be provided in the form of cash payments. Fringe benefits are also known as perquisites or perks.

Fringe benefits are often used to attract and retain employees, and are considered a form of indirect compensation. They are also used to provide employees with incentives to improve their performance and productivity. Fringe benefits are also used to provide employees with a sense of security and well-being, and to improve their quality of life.

Types of Fringe Benefits

  1. Payment for Time not Worked

    • Hours of Work: Compensation for hours beyond the typical work period.
    • Paid Holidays: Remuneration during national holiday breaks.
    • Shift Premium: Extra wages for working non-standard hours.
    • Holiday Pay: Compensation for holiday shifts or time off.
    • Paid Vacation: Salary provided during vacation leave.

  2. Employee Security

    • Retrenchment Compensation: Funds allocated to employees during layoffs due to restructuring.
    • Lay-off Compensation: Payments to workers during periods of no work activity.

  3. Safety and Health

    • Safety Measures: Initiatives and tools provided to ensure employee safety at work.
    • Workmen’s Compensation: Insurance covering on-the-job injuries and occupational diseases.
    • Health Benefits: Medical, dental, and vision care provisions.

  4. Welfare Recreational Facilities

    • Dating Allowance: Financial assistance for dating and marriage expenses. (Updated by Students Request😂)
    • Canteens: Subsidized or free on-site food services.
    • Consumer Societies: Employee cooperatives for purchasing goods at reduced rates.
    • Credit Societies: Financial assistance and loan services for employees.
    • Housing: Company-provided or subsidized accommodation.
    • Legal Aid: Access to legal consultation and support.
    • Employee Counselling: Mental health and guidance services.
    • Welfare Organisations: Groups providing various support services to employees.
    • Holiday Homes: Company-owned vacation accommodations for employee use.
    • Educational Facilities: Access to training and further education resources.
    • Transportation: Company-provided transport or subsidies.
    • Parties and Picnic: Organized social and recreational events.
    • Miscellaneous: Other various leisure activities and facilities.

  5. Old Age and Retirement Benefits

    • Provident Fund: Employee savings plans for post-retirement.
    • Deposit Linked Insurance: Insurance plans tied to savings deposits.
    • Gratuity: One-time payment upon retirement based on years of service.
    • Pension: Regular payments made to retired employees.
    • Medical Benefit: Post-retirement healthcare benefits.
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