Fringe benefits

FRINGE BENEFITS

JOSEPH GEORGEReg No:1016057

II MBAAIMIT.

Fringe Benefits

fringe benefits refers to the extra benefits provided to employees in addition to the normal compensation paid in the form of wage or salary.

supplementary formspaid to all employeesindirect compensationhelp raise the living

conditionsmay be statutory or

voluntary

Main features

Need for Fringe Benefits

Employee demands.Trade unions demands.Employer’s preference.As a social security. To improve human relations.

Objectives of Fringe Benefits

• To create & improve sound IR.• To motivate the employees.• To provide security to the employees.• To protect the health of the

employees.• To promote employee’s welfare.• To create a sense of belongingness.• To meet the requirements of various

legislations relating to FB.

Types of Fringe Benefits

Payment for time not worked.Employee security.Safety & health.Workmen’s compensation.Health benefits.Voluntary arrangements.Welfare & recreational facilities.Old age & retirement benefits.

Items covered under fringe benefits

As per the Finance Bill, fringe benefits shall be deemed to have been provided if the employer has incurred any expense or made any payment for the purposes of:

a) entertainmentb) festival celebrations c) giftsd) use of club facilitiese) provision of hospitality of every kind to

any person whether by way of food and beverage

(f) maintenance of guest house (g) conference(h) employee welfare (i) use of health club, sports and

similar facilities (j) sales promotion, including

publicity(k) conveyance, tour and travel,

including foreign travel expenses

(o) consumption of fuel other than industrial fuel

(p) use of telephone(q) scholarship to the children of

the employees

Fringe benefits offered by:

• IBM

•Wipro

• Infosys

WIPRO

• Cash compensation• Social security & well-being• Development & education• Employee stock purchase program• 5% discount of wipro stocks• Leave of absence programs• Relocation program• Railway half-fare season ticket

• Family service: areas of childcare• Homecare & eldercare• Bonus for recommending new

employees• Special conditions for insurance• Sickness & accident income plan

• Social security• Development & education• Cash compensation• Providing transit passes & van

pooling• Airways fair• Travelling & food

• Treasury regulations• Providing maternity leave• Bicycle commuter expenses

RECREATION FACILITIES

Gymnasium at Electronics city campus of Infosys at Bangalore is one of the largest gymnasiums in Asia and a mini golf course among others ... They even have boating and saloon facilities in their campus so that employees can relax and can take break in their hectic schedules.rest and recreation facilities such as a gymnasium, swimming pool, tennis, basketball and volleyball courts, in addition to cafeterias offering international cuisine

Food Courts, Health Club, Fitness Center with a special enclosure for Aerobics, Golf club.Amphitheatre, , a well-stocked Library, High speed connectivity, transportation facilities, stone-laid walking paths connecting each building (or one can use the bicycles provided to move around the campus) Medical facilities, Bank, ATMs, Travel Counter.

FACILITIES PROVIDED AT MYSORE CAMPUS

• The $120 million Infosys center• There's a Domino's Pizza, an infinity

pool studded with palm trees, and a geodesic dome housing three movie theaters. But the real mission is teaching the Infosys Way to the 15,000 employees the fast-growing company hires a year--an average of 40 a day.

SCHOLARSHIP TO THE CHILDREN OF EMPLOYEES

• AS PER THE LAST ANNUAL REPORT, INFOSYS SPEND LOT OF MONEY AS SCHOLARSHIP TO THE CHILDREN OF EMPLOYEES.

HEALTH ASSESSMENT PROGRAMMES FOR EMPLOYEES

Measure to help employees to be proactive about their own health and well being", It is also called health assessment and lifestyle enrichment programme. (HALE PROGRAMME)

Programme includes hobbies, interests, sessions for dance,aerobics, Yoga, painting, and Pranic healing.

z

health check-up facilities from simple tests to cancer screening.

Lectures on eye care, stress management, skin care and good eating habits

OTHER FACILITIESTGIF.OFFSITE TRIPS.CULTURAL PROGRAMMES ,FAMILY DAYS.CHILL OUT EVENING PARTIES.SHOPPING OPTIONS.MEDICAL CENTRES AND ATMS.HOSTELS, HOTELS AND DORMITORIES.MULTIPLEX.FOOTBALL AND CRICKET GROUNDS.MULTIPLEXFOOTBALL AND CRICKET GROUNDS

Payment made to a systems engg. In Infosys

• Basic pay:Rs.7730• Fixed dearness allowance:Rs.1100• Basket of allowances(medical,children’s

educationallowance,transport,HRA,LTA,miscillaneous allowances):Rs.10,470

• Bonus Exgratia:Rs.1670• Monthly component:Rs.21978• Annual component:Rs.88• Retiral benefit(pf):12% basic pay + FDA:Rs.1060• Grativity:4.8% basic pay + FDA:Rs.425• Fixed gross salary:Rs.23551• Training performance linked incentive-(mark=5):15%

(Rs.27084);mark=(4.5-5):12.5%(Rs.26495);mark=(4-4.5):10%(Rs.25906)