FRINGE BENEFITS

FRINGE BENEFITS

This are given to or offered to employees in addition to their wages or salaries and included in their employment contract.

In comparison, a salary is a fixed sum of money or compensation paid to an employee by an employer in return for work performed.

Salaries are paid at intervals of, say, a month, a week etc. and are determined by what is paid for similar services in the same Industry or neighborhood.

Fringes may be a substantial part of an employee’s income and it may take different forms such as share options, official car, insurance, vacations, medical expenses, housing payout etc.