SIGNIFICANCE  OF  BENEFIT  AND  SERVICES    

Benefits & Services are indirect compensation (as against direct compensation on crucial job factors & performance) because usually they are extended as condition of employ or with intention of inducement or inspiration and are not directly associated to performance. Fringe benefits are hypothetical to be benefit at the fringes, or edge of the basic pay. Now this has been replaced by easy benefits which form a substantial part of the overall compensation.

Worker benefits and services include any reimbursement that the worker receives in addition to direct remuneration.

 A formal definition is:

"Fringes embrace a wide range of benefits and services that workers receive as part of their total compensation package pay or direct compensation is depending on critical job factors & performance. However Benefits & services are indirect compensation because usually they are extended as a condition of employ and are not directly associated to performance."

Worker benefits are elements of compensation given additionally to the several forms of cash pay. They provide a quantifiable value for particular employees, which might be deferred or contingent as a pension scheme, insurance cover or sick pay, or might provide an immediate advantage like a company car. Employee reimbursement also includes elements, which are not firmly remuneration, like annual holidays.

The terms 'fringe benefits' and perks (perquisites) are sometimes utilized derogatively, but should be reserved for those worker benefits which are not basically catering for personal safety and personal needs.