Fringe Perquisite (Perk or Fringe Benefit)

Fringe Perquisite (Perk or Fringe Benefit) – A fringe perquisite is a non-cash benefit or advantage provided by an employer to an employee in addition to their regular salary or wages. These benefits are meant to enhance the employee’s overall compensation package and can include facilities, allowances, or services. In many countries, certain fringe perquisites are taxable under income tax laws, while some may be exempt up to specified limits.

Examples: Employer-paid club membership – The employer covers membership fees for a sports or social club. Company car or vehicle for personal use – If the employer provides a car that the employee can use for personal purposes. Housing or accommodation – Rent-free or subsidized accommodation provided by the employer. Education or tuition fees – Payment for an employee’s children’s education. Medical benefits – Reimbursement or direct payment of medical expenses. In short, fringe perquisites are extra perks beyond salary that improve the employee’s lifestyle or convenience but may have tax implications depending on their nature and value