BENEFIT PLAN

MANORANJAN DHAL
FRINGE BENEFITS
Any wage cost not directly connected with employees’
productive effort, performance, services or sacrifice
Benefits which are provided by an employer to or for
the benefit of the employee, and which are not in the
form of wages, salaries, and time related pay.
ILO defines fringe benefits as wages that are often
augmented by special cash benefits, by the provision
of medical and other services or by payments in kind,
that forms a part of the wage for expenditure on goods
and services
EMPLOYEE BENEFIT AND SERVICES

Includes any benefits that the employee receives in

addition to direct remuneration
These are indirect compensation because they are
usually extended as a condition of employment
Not directly related to performance
OBJECTIVES OF USING NON-
MONETARY AWARDS
To supplement a fair compensation plan
To see the transition to an organizational unit incentive
plan
To ‘fine tune’ employee performance
To help introduce an objective-driven, cost reduction or
gross profit enhancement plan
To recognize outstanding performance
To address additional work-life issues
To create organizational attribution versus legally
required compensation
BENEFITS
LTC – Leave travel Concession
Holiday and leave facility
Advances
Special benefits for women – creche, part –time,
career break
 Examples of Fringe Benefits
Legally Required 1. Old age, survivors, disability, and health insurance (commonly known as
Payments social security)
2. Employees compensation
3. Maternity leave
4. Gratuity
5. Severance pay
Contingent and 1. Pension plans
deferred benefits 2. Group Life insurance
3. Group health insurance ( Medical expenses, disability income)
4. Child care
5. Sick leave
6. Dental benefit
7. Tuition aid
8. Suggestion awards
9. Service awards
Payment for time not 1. Vacations
worked 2. Holidays
Other benefits 1. Travel allowance
2. Company CAB
3. Relocation expenses
4. Uniform and tool expenses
5. Employee meal allowances
6. Club/Gym membership
7. Special loans and advances
 CHILDCARE LEAVE FOR CENTRAL
GOVERNMENT EMPLOYEES
A total of 730 days
Up to the child attains 18 years
CCL may be granted at 100% of the leave salary for the
first 365 days and .80% of the leave salary for the next
365 days.
Extended to single male parents
Maximum of 3 spells in a calendar year (six spells in a
calendar year for single mother)
Each spell 15 days
CAFETERIA PLAN

Allows staff to choose from a variety of benefits to

formulate a plan that best suits their needs
Non-monetary rewards
Historically started in 1950s as award for length of
tenure in US
For who meets safety, cost reduction, productivity
goals
Award certificates,
Credit or debit cards,
Retail option
Lunches/dinners
Paid time off
Non-monetary rewards contd…

Unique travel experience – spas, biking, theater or

athletic event
Supplemental professional development – skill-
building conferences, business etiquette, mentoring
Personal development - sabbatical
Personal award profiles
AWARD SEEKERS – both monetary and trophy – younger
population
NESTERS – turns them off by incentives that take them
away from home – they enjoy their family.
BOTTOM LINERS – less concerned about trophy or award
value and only concerned about monetary value
FREEDOM YEARNERS - look for flexibility – flexible
hours, freedom to achieve goals, choose challenge, project
PRAISE CRAVERRS – praise is more than the award –
verbal, written, formal, informal any form
UPWARD MOVERS – less value for cash, or flexibility –
want to move up