tsmcharlesmba Started The Discussion:
This forum has been much useful to me in knowing various HR Concepts without any ambiguity.I thank all the members for contributing your anwers. Can someone help me in knowing the "Difference between fringe benefits and perquisites"?
Hi Charles, "fringe benefits" means compensation due to an employee pursuant to a written contract or written policy for holidays, time off for sickness or injury, time off for personal reasons or vacation, bonuses, authorized expenses incurred during the course of employment, and contributions made on behalf of an employee. In simple terms, all the monetary and non-monetary benefits beyond salary.
Perquisites or 'perks' as they are popularly known is the monetary content of fringe benefits. Perks are taxable according to Indian tax laws.
Anything in addition to Guaranteed Cash Compensation is Fringe Benifit.
Basic Salry and Allowances constitute GCC. Conveyance, Retirals,Houshing,Loans,Credit Card, Telephone, Insurance Coverage,Club Membership etc. are all Fringe Benefits. FB and quantum of FB is not guaranteed.
Perquisites are those facilities which the position carries. For example- once you are promoted to the position of Sr.Manager, you will be eligible availing car under company's own your car scheme.
Hope, I am clear to u.
Fringe Benefits can be monetary and non-monetary. It can be given through or after the employment.
Main thing is that its all concern with employment only not with the performance.
Some fringe benefits are :
Post retirement benefits etc.
Perks are similar to perquisites
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