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2 Its refers to various extra benefits provided to
employees, in addition to the compensation paid in
the form of wage/salary.
2 A motivational tool used by organizations to retain
their staff in their present capacity.
2 Balcher definition - ´Amy wage cost not directly
connected with the employees productive effort,
performance, service or sacrificeµ
2 Cockmar·s definitions - those benefits that are
provided by an employer to or for the benefit of an
employee and that are not in the form of wage,
salaries and time-related payment.
2 Fringe benefits include bonus, social security
measures, PF, gratuity, pension, housing, medical,
canteen among others

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G. To create and improve industrial relations

2. To provide a qualitative work environment and
professional life
3. To boost employees morale
4. To motivate employees by identifying and satisfying
their needs
5. To provide security to employees against accidents by
means of health amenities and insurance as well as
offering old age and maternity benefits
6. To promote employees· welfare by providing
recreational facilities
Ô

. To create a sense of belonging among employees and to

retain them (Hence they are also called as Golden
Handcuffs)
8. To meet the requirements of various legislations relating
to fringe benefits
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2 
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    Î
ü This includes benefits such as paid leave, paid
vacation and payment for lunch hour
ü Employees are entitled to various holidays
ü For e.g. an organization grants 30 days of privilege leave,
5 to  days of casual leave and 5 to  days of sick leave
ü For all these days taken off, company does not deduct
any amount from the salary
ü For public holidays and weekly offs too no deductions
are made
ü Female employees are granted G2 weeks of maternity
leave, according to Maternity Benefit Act
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ü The Payment of Wages Act, G 36, The Minimum Wages
Act, G 48 and The Payment of Bonus Act, G 65, provide
income security to employees
ü Under Industrial Dispute Act, G 4 employees are
provided with financial security in case their services are
either terminated or retrenched
ü They are given retrenchment compensation @G5 days
average pay for every completed year of service
ü In cases where employer gives lay off to employees
whose names are on the muster roll of the company,
compensation equal to G5 per cent of their total basic and
D.A is given
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ü Employees· safety and health should be protected against

accidents and unhealthy working conditions
ü In India, there are 3 important labor laws that take care of
safety and health of industrial health, viz, the Factories
Act, G 48, The Workmen·s Compensation Act, G 23 and
Employees· State Insurance Act, G 48
ü These laws cover sickness, maternity and disablement
benefits and offer dependents benefit to family members


 


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These includeÎ
G. Canteen
2. Consumer societies
3. Credit societies
4. Housing
5. Legal aid
6. Employee counseling
. Welfare organizations
8. Holiday homes
. Educational facilities
G0. Transportation
GG. Parties and picnics
G2. miscellaneous
  
 


2 Perks and perquisites are excellent motivational tools
normally given to senior executives of organization
2 These benefits are given apart from the salary to retain
the executives and motivate them and to keep their
morale high
2 To employee it is means of savings tax and to employer it
is a cost
2 Following perquisites are normally given to the
executives in India according to their grades and ranks in
organizationÎ
ü Credit Card facility
ü Club Membership
ü Car with or without driver, with or without petrol
ceiling
ü Keyman Insurance
ü Medical policy or Insurance policy
ü Furnished or unfurnished accommodation

ü Telephone facility

ü Mobile phone facility with or without limits

ü Computer with internet facilities

ü Special leave with air passage to overseas destination

ü Concessional or interest free loans for children·s

education