Answer:
Employees are paid several benefits in addition to wages, salary, allowances and bonus. These benefits and services are called ‘fringe benefits’ because these are offered by the employer as a fringe. Employees of the organization are provided several benefits and services by the employer to maintain and promote employee’s favorable attitude towards the work and work environment. It not only increases their morale but also motivate them. These provided benefits and services forms the part of salary and are generally refereed as fringe benefits.
According to D. Belcher, “ Fringe benefits are any wage cost not directly connected with the employees productive effort, performance, service or sacrifice”. According to Werther and Davis, “Fringe embrace a broad range of benefits and services that employees receive as part of their total compensation, package- pay or direct compensation and is based on critical job factors and performance”.
According to Cockman, “ Employee benefits are those benefits which are supplied by an employer to or for the benefits of an employee and which are not in the form of wages, salaries and time rated payments”. These are indirect compensation as they are extended condition of employment and are not related to performance directly.
