Fringe Benefits (Perks)
Meaning
Fringe benefits are extra, non-financial rewards given to employees in addition to wages or salary.
They are also called perks.
These benefits usually depend on the seniority or level of the job.
Who gets what?
Factory or junior workers: may receive small benefits like product discounts.
Senior managers: often receive many high-value benefits such as cars, housing, and expense accounts.
Examples of Fringe Benefits
🚗 Company vehicle (car)
🛍️ Discounts on the company’s products
🏥 Health care paid by the company
🎓 Children’s education fees paid
🏠 Free accommodation
📈 Share options (company shares given to employees)
🍽️ Generous expense accounts (food, clothing, etc.)
👴 Pension paid by the business
✈️ Free trips abroad or holidays
Why businesses offer fringe benefits
To motivate employees
To reward senior staff
To attract and retain skilled workers
To improve job satisfaction and loyalty