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Perquisites, also known as “perks” are the extras that frequently go with
executive status. Used to supplement the basic benefit package, perks range
from such amenities special parking & plush offices to pay for vacation
travel, automobile expenses, & company-paid membership in clubs.
Perquisites are strictly restricted to the CEOs and that small group of key
officials who comprise the senior management of the organization. In addition
to the status relationship, perquisites provide benefits that either not
considered as earned income to the recipient or are taxed at a modest level.
More personal perks, such as low cost loans & personal use of company
facilities (e.g.-airplanes), have been slowly disappearing over the last 10 yrs as
various tax & regulatory agencies have ruled that their value must be included
in the executive’s taxable income. However, the list of perks offered is long &
will remain an expected feature of upper levels of the executive ladder.
Speaking of perks, in 2000, apple computer’s CEO, Steve jobs, received the
ultimate non financial incentive a $90 million Gulfstream V jet of his own.
Common perks are company cars, hotel stays, free refreshments, leisure
activities on work time (golf, etc.), stationery, allowances for lunch, and—when
multiple choices exist—first choice of such things as job assignments and
vacation scheduling. They may also be given first chance at job promotions
when vacancies exist.
List of Perquisites:
• Rent free accommodation
• Furnished accommodation
• Free education
• Free transport
FRINGE BENEFITS
Fringe Benefit – meaning:
The term Fringe benefits refer to various extra benefits provided to the
employees, in addition to the compensation paid in the form of wage or salary.
These benefits can be defined as any wage cost not directly connected with the
employees productive effort, performance, service or sacrifice.
Different terms are used to denote fringe benefits. They are welfare measures,
social charges, social security measures, supplements, sub-wages, employee
benefits etc. In addition workers commonly receive such benefits as holiday
with pay, low cost meals, low-rent housing etc. Such additions to the wage
proper are sometimes referred to as fringe benefits.
Thus, fringe benefits are those monetary and non-monetary benefits given to
the employees during and post employment period which are connected with
employment but not to the employees contributions to the organization.
5. To provide security to the employees against social risks like old age benefits
and maternity benefits.
6. To protect the health of the employees and to provide safety to the employees
against accidents.
7. To promote employees welfare by providing welfare measures like recreation
facilities.