Fringe benefits are the benefits offered to the employees by the employers in addition to the salary of wages. These benefits are provided to the employees to give them the privilege and advantage of working with them. There have been profound changes in the fringe benefits by the companies over time. Earlier only share in the profit or company stock were given to the employees as a fringe benefit. But nowadays, benefits like membership to the gym, car, mobile, and bills are paid by the employer so that the employee is benefited financially.
A recent study showed that 70% of employees’ preference depends upon the listed fringe benefits offered by employers. They judge the company jobs as per the benefits they will get in return. Hence, in order to comply with the law and employee demand, companies offer a wide variety of fringe benefits.
Types of Fringe Benefits
Here we discussed some of the types of fringe benefits offered to employees by employers:
Paid Non Working hours
Salary payment for holidays and nonworking days are mandatory for the companies as per rules and regulations. The government also regulated the paid sick days worker can collect from the eml[poyer. Apart from the Laws, companies also facilitate paid vacation days and sick days for self or family of the employee to show them their concern.
Employees Security
The welfare and security of the employees are essential for the employer. It is not only the moral duty of the employer but also legal responsibilities. In this context, these days, companies with the production line and work, which may entail injuries are offered retrenchment compensation. In case of the death of the employee company also provides compensation and a working opportunity for the next kin in the company.
Health and Safety
For matters like the health and safety of the employees, employers offer their workers with appropriate health and dental insurance. The companies provide free health check-ups and insurance premiums for the workers to keep them secured. In the case of unforeseeable accidents, the company ensures that the worker’s families get financial support.
Women Benefits
With the increase in the women workforce, it is essential that the company offer fringe benefits to the women suiting their needs. Paid maternity leave is a new concept that is offered by the company to the women employees. According to the idea, women are given paid leave for giving birth to a child, miscarriage, or sickness arising from the pregnancy.
House Rent and other Living Expenses
House rent allowance and other living expenses are offered to pay by the employers for the employees so that they don’t have to pay for the house rent and other costs for themselves. The company also offers to pay the costs like maid expense, a security guard at home, and a driver’s salary.
Recreational and Welfare
With the development in the time and employees’ demand, fringe benefits also include recreational and welfare expenses for the employees. This includes membership to the club or gym.
Take Away
The main objective of fringe benefits to the employees is to retain them for a longer time and to earn their loyalty towards the company. Also, these days, employees are more attractive with the benefits rather than compensation. It also motivates the employees to work with the company for longer times.
