fringe benefit


fringe benefit

noun

: something extra (such as vacation time) that is given by an employer to workers in addition to their regular pay

Full Definition of FRINGE BENEFIT

1
:  an employment benefit (as a pension or a paid holiday) granted by an employer that has a monetary value but does not affect basic wage rates
2
:  any additional benefit (increased energy is a fringe benefit of regular exercise)

First Known Use of FRINGE BENEFIT

1948

fringe benefit

noun    (Concise Encyclopedia)

Any nonwage payment or benefit granted to employees by employers. Examples include pension plans, profit-sharing programs, vacation pay, and company-paid life, health, and unemployment insurance. Employers' payments for fringe benefits are included in employee-compensation costs and therefore are not usually taxed. If the cost of fringe benefits were paid directly as wages, the worker would pay taxes on this amount and therefore have less to spend when purchasing equivalent benefits independently.

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