fringe benefit

An employment benefit given in addition to one's wages or salary.

Compensation to employees in addition to salary. Some examples of fringe benefits are paid holidays, retirement plans, life and health insurance plans, subsidized cafeterias, company cars, stock options, and expense accounts. In many cases, fringe benefits can add significantly to an employee's total compensation, and are a key ingredient in attracting and retaining employees. For the most part, fringe benefits are not taxable to the employee, though they are generally tax-deductible for the employer.

Compensation or other benefit provided by the employer to the employee at no charge that is above and beyond salary or wages. Examples include health plans, Cafeteria Plans, and life insurance.

Benefits, other than wages or salary, provided by an employer for employees (for example, health insurance, vacation time, disability income).

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A payment to a worker in addition to salary or wages. It may take the form of cash, goods, or services, and may include such items as health insurance, pension plans, and paid vacations.