2. The term perquisites is often used
colloquially to refer to those benefits of a
more discretionary nature.
Often perk are given to employees who are
doing notable well/or have seniority.
Perquisites are strictly restricted to the CEOs
and that small group of key officials who
comprise the senior management of the
organization.
3. Rent free accommodations
Perquisites in respect of motor cars.
Gas ,electricity ,water supply.
Free education
Free transport
Leave travel concession(ltc).
Employee stock options(ESOP’S).
4. Any privilege, service, facility or
amenity, directly or indirectly provided by
employer to employee.
Any reimbursement for any purpose.
Any free or concessional ticket for private
journey of employees and family members.
The fringe benefits refer to various extra
benefits provided to employees, in addition
to compensation paid in form of salaries.
5. To create and improve sound industrial
relation.
To boost up employee moral.
To motivate employee.
To provide qualitative work environment.
To provide security to employee against
social risk.
To promote employees welfare by providing
welfare measures like recreation facilities.
6. EMPLOYEE DEMAND
TRADE UNION DEMAND
EMPLOYER PREFERANCE
AS A SOCIAL SECURITY
TO IMPROVE HUMAN RELATION
7. For employee security.
For health protection.
For old age and retirement.
For personal identification.
8. Payment for the time not worked.
Hazard protection.
Employee service.
Legal payments.
9. Payment for time not worked:-benefits under
this category includes sick leave with
pay, vacation pay ,paid lunch periods.
Hazard protection:-organization provide their
employee with verity of insurance services to
help them and there families maintain a
normal standard of living when unexpected
health related adversities occurs.
Employee service:-
10. Legal payments:-these are amenities which
are necessary to be provided to the
employees under different labor legislations.
1.The employee state insurance act 1948.
2. The employee provident fund act 1952.
3.The workman compensation act 1923
4. The maternity benefit act, 1961.
5. The payment of gratuity act 1972.
11. In addition to fringe benefits ,organization
also provide a wealth of services that
employee find desirable.
These services are usually provided to the
employees at no cost to the employee or at a
significant reduction from what might have
to be paid without organization support.
12. Service related to type of work performed
including subsidies for the purchase or
upkeep of work clothing and uniform and of
the various types of tools used by worker in
the course of his work.
Eating facilities which include co. resturant
,canteen etc.
Transporting facilities including parking lots
and bus services.
Child care facilities.
13. Housing services.
Financial and legal services including
sponsoring of loan funds etc.
Medical services including clinics and
hospitals.
14. Since less time is lost due to tardiness , the
ratio of man-hours worked to man hours
paid increases.
Absenteeism is reduced.
The hour actually worked seems to be more
productive.
The distinction between the management and
professional workers is reduced and more
authority is delegated by supervisors.
15. Flextime is complicated to administer and
may be impossible to implement where large
group of worker must work independently.
It requires the use of time clocks or other
time records ,which might irritate the
worker’s.
16. When the employer’s federation of India
conducted a study of fringe benefits in the
country ,it was revealed that in 1960,981 co.
which were included in the survey, paid a little
over Rs. 2,148.3 million in wages and fringe
benefits, and that the latter was about 21.3
percent of their total wage bill in that year.
The fringe benefits were high in mining 24.84%
of the wage bill, and plantation industries
24.3%and were competitively low in
manufacturing sector19.99%of the wage bill.
