1

APRESENTATION ON

• SONAM RANDIVE (10MBA087)

• RATNA ROY (10MBA092)

• PRIYANKA SOLANKI (10MBA104)

• CHARMI THAKKAR (10MBA111)

2

OVERVIEW

• Introduction

• Definition

• Objectives

• Need for Fringe Benefits

• Types of fringe benefits

• Benefit Plans

• Advantages of Fringe Benefits

• Disadvantages of Fringe Benefits

• Fringe Benefits Tax

3

INTRODUCTION

• Compensation in addition to direct wages or salaries, such as company car, house allowance, medical insurance, paid holidays, pension schemes, subsidized meals. 

• Management concerned with attending employees, whose performance meets at least minimum levels of acceptability ,and at keeping absenteeism, and turnover to tolerable levels. The provision of benefits and services can be and important in maintaining the employees and reducing or keeping turnover and absenteeism low.

4

DEFINITION

• As per Section 115WB (1) ,narrated in Column

1 of Part A, fringe benefits means any

consideration for employment provided by way

of any privilege, service, facility or amenity,

directly or indirectly, provided by an employer,

whether by way of reimbursement or

otherwise, to his employees.

5

OBJECTIVES

• To create and improve sound industrial relations.

• To boost up employee morale.

• To motivate the employees by identifying and satisfying their unsatisfied needs.

• To provide qualitative work environment and work life.

• To provide security to the employees against social risks like old age benefits and maternity benefits.

6

CONTI…

• To protect the health of the employees and to provide safety to the employees against accidents.

• To promote employee’s welfare by providing welfare measures like recreation facilities.

• To create a sense of belongingness among employees and to retain them. Hence, fringe benefits are called golden hand-cuffs.

• To meet requirements of various legislations relating to fringe benefits.

7

NEED FOR FRINGE BENEFITS

• Rising prices and cost of living

• Fringe benefits present attractive areas when large wage and salary increases are not feasible

• The growth and strength of trade unions has substantially influenced the growth of benefits and services

• Labour scarcity and competition for qualified personnel

• Rapid industrialization, increasingly heavy urbanization and the growth of a capitalistic economy

8

TYPES OF FRINGE BENEFITS

1. For employment security

2. For health protection

3. For old age and retirement

4. For personnel identification, participation

and stimulation

9

BENEFIT PLANS

• 3 popular benefit plans :

• Modular plans

• Core-plus plans

• Flexible spending plans

• Around 40% of employees’ salary are provided as fringe benefits

10

FRINGE BENEFIT TAX

• Fringe Benefit Tax (FBT) is a tax levied on perquisites-or fringe benefits -provided by an employer to his employees, in addition to the cash salary or wages paid. (abolish in the finance bill of 2009)

• Includes:

• Provision of employee transportation to work

• Approved retirement plan

• Employee stock option plans

11

ADVANTAGES OF FRINGE BENEFITS

• Advantages for Employer :

1. Improves efficiency and productivity

2. Savings with quality coverage

3. Helps attract and retain better qualified

employees

4. Companies can keep their key

employees

5. Provides high risk coverage at low costs

easing the company’s financial burden

12

CONTI...• Advantages for Employees :

1. Additional protection with personal life insurance

2. Boost staff morale and pride

3. Employees enjoy cheaper rates negotiated

through their employer than they could obtain

as an individual

4. Peace of mind as employees are assured of

provision for themselves and families in any

mishap

13

DISADVANTAGES OF FRINGE BENEFITS

1. More costly for small employers

2. Increase administrative cost of organization

3. Create bad image of organization if it fails

to pay Fringe benefit or exclude someone

14

FRINGE BENEFITS BY HCL

• Health check up once in a year

• Facility for career development

• Transportation benefit

• Flight facility

• Claim and voucher for parents treatment

• HCL colony less than mkt price

• Holiday

15

CIVIL HOSPITAL

• Mobile sim card

• Leave Policy

• Housing Loan upto 5 lac

• Car & scooter loan

• Retirement benefits

• Government Insurance

• Food advance

• Computer training

• Book Allowance

16

• LTC after 1 year

• Contributory Health Scheme (specific for this unit)

• Life Insurance with saving benefit

• Sick leave

• Productivity Linked Incentive

• Co-operative Credit Societies

• Housing Loan

• Recreation Club

• Special Pay for night shift

• Job to son/daughter

HEAVY WATER PLANT

17

ELICON ENGINEERING CO. LTD

• Superannuation scheme

• Gratuity scheme

• EDLI scheme

• Group term insurance cover

• Group personal accident cover

• Accidental death (AD)

• Permanent total disability (PTD)

• Temporary total disability (weekly indemnity) (TTD)

18

THANK YOU