fringe benefit

any of various benefits, as free life or health insurance, paid holidays, a pension, etc., received by an employee in addition to regular pay.
[1945-50]

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Any nonwage payment or benefit granted to employees by employers.

Examples include pension plans, profit-sharing programs, vacation pay, and company-paid life, health, and unemployment insurance. Employers' payments for fringe benefits are included in employee-compensation costs and therefore are not usually taxed. If the cost of fringe benefits were paid directly as wages, the worker would pay taxes on this amount and therefore have less to spend when purchasing equivalent benefits independently.

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      any nonwage payment or benefit (e.g., pension plans, profit-sharing programs, vacation pay, and company-paid life, health, and unemployment insurance programs) granted to employees by employers. They may be required by law, granted unilaterally by employers, or obtained through collective bargaining. Employers' payments for fringe benefits are included in employee-compensation costs and therefore are not usually liable to corporate income tax. If the cost of fringe benefits were paid directly as wages, the worker would pay personal income tax on this amount and therefore have less to spend on such benefits as he might elect to furnish for himself. Thus, the employer can obtain more benefits for the employee with the same amount of money. He can also take advantage of lower group rates for insurance.

      Fringe benefits have generally constituted a higher proportion of total employee compensation in Europe than in the United States. In Europe they are most often the result of legislation, whereas in the United States collective bargaining has been more important in gaining such benefits for workers. The prevalence of fringe-benefit programs increased sharply during World War II because controls on this type of compensation were less stringent than controls on wages.

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Universalium. 2010.

Look at other dictionaries:

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  • fringe benefit — fringe .benefit n [C usually plural] an additional service or advantage given with a job besides wages ▪ A competitive salary with fringe benefits will be offered …   Dictionary of contemporary English

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  • fringe benefit — noun an incidental benefit awarded for certain types of employment (especially if it is regarded as a right) (Freq. 2) a limousine is one of the fringe benefits of the job • Syn: ↑perquisite, ↑perk • Hypernyms: ↑benefit • H …   Useful english dictionary

  • fringe benefit — UK / US noun [countable] Word forms fringe benefit : singular fringe benefit plural fringe benefits 1) something that you get in addition to your salary, for example a car 2) any extra thing that you get unexpectedly …   English dictionary

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