Fringe benefits

Fringe Benefits Fringe Benefits are non-monetary or supplementary compensations provided by employers to employees in addition to regular wages or salaries. These benefits are designed to enhance employee welfare, motivation, and job satisfaction, and may form a significant part of an employee’s total compensation package. Common examples of fringe benefits include health and life insurance, retirement or pension contributions, company-provided vehicles, housing facilities, meal vouchers, education assistance, or recreational allowances. In many countries, certain fringe benefits are taxable, while others are partially or fully exempt depending on the nature of the benefit and the governing tax laws.

Example: An employer provides a company car and health insurance to an employee. These are considered fringe benefits, and their taxable value may be determined under the Fringe Benefit Tax (FBT) rules, where applicable.