Introduction to Fringe Benefits
Some benefits are offered to salaried employees other than their basic salary. These are called fringe benefits. These fringe benefits are offered based on the employees’ performances or a specific service provided by the employees.
Some fringe benefits are universal to all employees and are also compulsory by law like the health insurance benefits, social security benefits, etc. Apart from these compulsory benefits some other fringe benefits that are optional can be offered voluntarily by the employer.
These voluntary benefits include childcare services, retirement planning, free breakfast, gym membership, transportation benefits, etc. These benefits are given by the employer by choice and are not compulsorily offered. The employer can offer you such fringe benefits as a result of your exceptional performance or added assistance in certain projects and services.
There are various reasons as to why employers offer fringe benefits; these reasons include employee wellness, public perception and employee engagement. Companies that provide additional benefits stand out in the market and can attract more employees and aspirants. Also the existing employees work harder when they are reassured with such support and appreciation from their employer.
Types of Fringe Benefits
The main two types of the Fringe benefits are fringe benefits that are required by law and the fringe benefits that are not required by the law. These can then be divided into different fringe benefits offered under the wide categories.
Fringe benefits required by law
These include all the benefits that the employer has to offer to all the employees. These benefits include health insurance, medical leave, unemployment insurance, worker’s compensation, etc. These fringe benefits are required to be offered to all employees by law. These give the employees a sense of job security and sense of income stability.
Fringe Benefits not required by law
Apart from the benefits required by law, there are some other additional benefits that the employer offers voluntarily to the employees. These may include free breakfast, gym membership, life insurance, paid leaves, education support, child care, etc. These benefits are not required by law but the employer offers them to you by choice as an appreciation for your performance or added service.
