ABSTRACT
The range, variety and importance of fringe benefits in employment policies have grown in recent years, partly because of the nature of personal taxation and partly because of pressure from other sources such as the rapidly increasing competition for employees. Fringe benefit packages have been adopted in order to motivate employees to enhance their performance and to encourage them to maintain and extend their continuity of service with their employer. They include benefits that attract little or no tax, such as meals and holidays, and deferred earnings such as pensions. Fringe benefits have considerable value to many employers in that they represent a form of reward that does not necessarily have progressive or long-term effects in the way that a salary increase does. A salary increase is usually for all time. It affects all future settlements because most settlements are percentage based. Also a salary is the basis for settlements such as redundancy and pension rights whereas many fringe benefits may not have such long-term effects.
