Economic Definition of fringe benefit. Defined.
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Term fringe benefit Definition: A nonwage benefit or payment to, on the behalf of, labor apart from a monetary wage payment. Common fringe benefits include health insurance, life insurance, retirement, unemployment benefits, payroll tax, vacation and sick leave, stock options, and travel. The attainment of Fringe benefits was one of the primary goals of the labor union movement and remains a major point of negotiation during collective bargaining between labor and management.