Difference between revisions of "Fringe benefit"
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| + | A '''fringe benefit''', also called a "perquisite" or "perk," is a form of pay for the performance of services, in addition to a persons base pay. | ||
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| + | A fringe benefit is any non-wage 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 packages. | ||
| + | Fringe benefits constitute a higher proportion of total employee compensation in [[Europe]] than in the [[United States]]. In Europe they are often the result of [[legislation]]; in the United States collective bargaining has been more important in gaining such benefits. 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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| + | == References == | ||
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| + | *http://www.britannica.com/eb/article-9035448/fringe-benefit | ||
| + | *http://www.irs.gov/pub/irs-pdf/p15b.pdf | ||
| + | *http://www.hoover.org/publications/ednext/3347981.html | ||
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| + | [[category:economics]] | ||
Revision as of 21:57, May 23, 2010
A fringe benefit, also called a "perquisite" or "perk," is a form of pay for the performance of services, in addition to a persons base pay.
A fringe benefit is any non-wage 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 packages.
Fringe benefits constitute a higher proportion of total employee compensation in Europe than in the United States. In Europe they are often the result of legislation; in the United States collective bargaining has been more important in gaining such benefits. 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.