Types of Fringe Benefits
There are various types of fringe benefits which are provided to the employees and there are classified in the different ways. Broadly these benefits are classified in the following:
1. Employee Welfare
The various type of benefits offered to the employee under employee welfare scheme are within the industrial establishment,these are known as intra-mural and the benefits outside the industrial establishment are known as extra mural. These welfare services include canteen,rest and recreational facilities, sanitary and medical facilities.
2. Social Security
Social security is related to the high ideals of the social security and human dignity. According to the ILO, Social security is the protection provided by the society to its members through a series of public measures against the social and economic distress that otherwise would be caused by the stoppage or substantial reduction of earnings resulting from sickness,maternity,employment injury,old age and health.
3. Employee security
The continuous and minimum wage or salary gives a sense of security to the employees. The payment of wages act,1936, The minimum wages Act,1948, the payment of bonus Act 1965, provide income security to the employees.
4. Payment for time not worked
It includes the provisions for the payment to the workers for the days not worked.
This category include the following:
- Paid holidays: According to the factories act, 1948 an adult worker should be paid for weekly holiday,preferable it should be Sunday or any other day
- Shift premium
- Paid vacation
- Holiday pay
5. Health benefits
Various medical facilities like hospital,and dispensary facilities are provided by the organisation to the employees are their family members. Benefits to be provided under employee state insurance Act 1948 are the following:
- Maternity benefit
- Disablement benefit
- Dependent benefit
- Sickness benefit
- Medical benefit
6. Retirement benefits
The following are the benefits are provided at the time of retirement:
- Provident fund scheme (P.F)
- Pension scheme
7. Compensation benefits
The compensation benefits are paid to the employees either according to workmen compensation act,1948 or under contractual obligation. According to the act, the compensation is paid to the employees in case of injuries,accidents or otherwise to the worker during the course of his job performance. Under contractual obligation,an employer is liable to pay equivalent to three months wages or salaries.
8. Voluntary arrangements
Most of the large organizations provide health services over and above the legal requirements to their employees free of cost by setting up clinics,hospitals,dispensaries etc.