The fringe benefits tax was the tax applied to most, although not all, fringe benefits in India. Fringe benefits are compensations made to an employee beyond the regular benefit of being paid for their work. Some fringe benefits are fairly standard, such as offering a few days of sick time or paid vacation time. Others can be significantly greater, and rarer. Sometimes the fringe benefits turn out to be greatly needed. Some companies avoid this by employing more part-time workers. In fact, in fields where there is a high demand for workers, such as nursing and teaching, some unusual fringe benefits may be offered to attract employees. Small school districts have gotten quite creative in this respect, since teacher salaries are still relatively low.
More likely are paid incentives for joining a teaching staff such as hiring bonuses, offers to fund continuing education so teachers get higher degrees and thus higher pay, or offering mentor programs for new teachers. Other fields with high demands for workers and low worker supply are likely to offer the most attractive fringe benefits packages. Some companies also pay fringe benefits for those who work night or swing shifts. These fringe benefits may be in the nature of a 10—30% increase of base pay for working a non-standard shift. This is called a shift differential and is quite common in the medical field and in manufacturing.
What are the fringe benefits?
