HR Glossary

Fringe Benefits

Fringe benefits are the additional compensation provided to employees above their regular wages or salaries by the employers.

Fringe Benefits

Fringe benefits are extra perks offered by employers to employees, which extend beyond their standard wages or salaries. Some of the common fringe benefits include health insurance, life insurance, retirement plans, medical leave, and paid vacation. Fringe benefits come in many forms such as cash, property, services, or even non-tangible benefits like company car. Employers will decide the type of fringe benefits to be given to each employee after analyzing the eligibility of the employees for each benefit. 

Use cases:

The sole purpose of fringe benefits is to enhance employee loyalty, engagement, and productivity. Such benefits are frequently offered during recruitment to attract and retain top talents within the organization. These additional benefits not only motivate employees but also help employers gain a competitive edge in the talent market. Though fringe benefits may vary depending on the organizational policies and employee eligibility, most of them facilitate work-life balance for employees, especially those looking for remote work options. The financial security and favorable tax benefits offered by some fringe benefits can be also useful in filtering the exclusive talent for the organization. 

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