FRINGE BENEFITS Introduction In todays global business scenario, where resources are at Premium, hence the organizations in order

to retain their employees for a longer period provide such other benefits : 1. Fringe benefits are extra benefits and services 2. It is one and above the normal ways and remuneration 3. It is one of the important features due to which employees are attracted to various jobs 4. It is different from wage incentives which are dependent on the output or linked to employees performance 5. There benefits are not linked to employee performance but are part of term of employment 6. Earlier they should to be in minor terms but only constitute a major portion of expenditure. The Fringe Benefits are defined as It is the additional benefits given by the employer to the employee in terms of perils and privileges above their authorized remuneration and compensation Pareek & Rao Objectives 1. To ensure to retain trained manpower 2. To ensure to Reduce absenteeism 3. To Reduce manpower turnover 4. To Ensure organizational objectives are met 5. To ensure sense of belongingness 6. To ensure to reduce the grievances of the day to day functioning 7. To establish Harmonious relationship between employee and employer 8. To ensure higher / Increase Productivity of the organization 9. To ensure high level of motivation among employees and Improve Morale 10. To Increase employee participation in management 11. To Ensure Safety and security of employee 12. To provide Health benefits and welfare measures 13. To Provide good working conditions Users of Fringe Benefits 1. Employee Favours to reduce tax benefits and avail better services at reduced or no cost 2. Employer Help to improve morale / motivation of employee and their retention

Different types of Employee Service Programme with Example : 1. Payment for hours not worked a. Working House i. As per Factories Act 1948, en employee is required to work for max 9 hrs / day or 48 hrs / week ii. There are many organizations where working hours are much less b. Paid Holiday i. As per Factories Act 1948, there is a statutory requirement to give one holiday during a week preferably Sunday ii. There are many establishment which give two holidays a week c. Paid Vacation i. Each employee is entitled for paid vacation if he has worked for more then 240 days in a year or given ii. Some organizations give more holidays d. Holiday Pay : In case of an employee wored on any public or declared holidy he is entitled for double payment e. Shift Premium : A number of establishment pay extre for working in shifts at odd hours 2. Employee Security a. After the job is confirmed, en employee is assured for some security b. However, if due to certain reasons, the organization is compelled or forced to reduce the employee for different reasons, the employee is provided following security. i. Retrenchment Compensation : 1. A notice of minimum 3 months or equivalent wages is to be given to the employee 2. Permission of relevant authorities is to be obtained 3. Pay for 15 days of every year of secure is given in addition to gratuity ii. Lay Off Compensation 1. Normally an employee to be laid off with full paid compensation 2. The lay off is for a maximum period of 45 days 3. An employee gets 50% wages + DA 3. Health and Safety Benefits a. Health Measures i. Cleanliness ii. Disposal of waste / Affluent iii. Temperature / ventilation iv. Artificial -----v. Drinking water vi. Latrine / Toilet / Urinals b. Safety Measures Against i. Fencing of machines

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ii. work near machines iii. Protective of employment of women and children near the machines in motion iv. working near cotton greaves v. striking gear vi. power devices vii. Heist and lift viii. Floor, sumps, pits ix. Cranes, Trolley x. Maintenance of buildings xi. Provision of Safety Officer There are only a few of the safety measures Compensation a. In accordance with Workmen Compensation Act 1923 and employee is to be provided compensation against occupational diseases and death. b. It is for permanent as well as temporary disablement. Medical Benefits a. Sickness Benefits i. Payment at standard rate ii. Maximum 90 days in two contributory period b. Dependent benefits i. Family members can avail hospitalization benefits Welfare Measures a. Canteen for more than 250 workers b. Recreation room c. Education scholarship d. Picnics e. Gifts f. Legal services Old Age a. Provident Fund Fund has been accumulated during the service to take care of his life after retirement b. Gratuity Exgratia or extra payment paid for long service rendered to the organizations c. Pension Fixed amount paid on monthly basis from accumulated PF amount to rest of his life to take care of his livelihood. d. Insurance Voluntary service a. Hospitals / Dispensaries / Clinics are established b. Counselling service c. Training to family members etc

Conclusion Fringe benefits are basically essential to encourage employees to deliver more the get more efficient and effective.