FRINGE BENEFIT, TANZANIA PERSPECTIVE

BY

CHARLES J. MWAMTOBE

MEANINGIs indirect forms of the total compensation, they include paid time away from work, insurance and health protection, employee services and retirement income”, (Milkovich, George T. 2004:790)

According to Leslie W.R and Byars, L. L (2008). are those rewards that employees receive for being member of the organization and for their position in the organization, unlike wages, salaries and incentives, benefits are usually not related to employee performance

CONT……In general, Fringe benefits are the extra benefits that are provided to the employees outside of a stated wages or salary. Sometimes refers as forms of additional compensation, bonus, premium, rewards that are supplementing an employee’s money wage or salary. For example housing allowances, medical insurances, sick pay, meals pay, educational assistance, vocation pay, employee discount.

EXAMPLES OF FRINGE BENEFITS

PRINCIPLES OF FRINGE BENEFITS Benefits and services need to be provided to the employee on the basis of a genuine interest in the protection and promotion of their well being.

The benefits need to be cost effectives.

Need to be as broad based as possible.

CONT……Administration of the benefits need to be preceded by the sound planning .

Employee needs to be educated to make use of the benefits.( Aswathappa 2014:450)

OBJECTIVES OF FRINGE BENEFITSTo boost up employee morale

To motivate the employee by identifying and satisfying their unsatisfying needs

To create and improve sound industrial relations.

To create sense of belongingness among employees and to retain them

CONT……..To provides security to the employees against social risk. E.g. old age benefits and maternity benefits.

To promote employee welfare by providing welfare measures. E.g. recreations facilities.

To create sense of belongingness among employees and to retain them

T protect the health and safety of employees against accidents

FRINGE BANEFITS IN TANZANIAIn Tanzania perspective, there is provision of fringe benefits, Some benefits are stated by Tanzania laws especial those under labour laws (statutory rights).

For example those which stated in Employment and labour relation act, act No. 6 of 2004, Labour institution act, act No. 7 of 2004

TYPES OF FRINGE BENEFITS IN TANZANIA PERSPECTIVES

CONT…….. 1. EMPLOYMENT SECURITY BENEFITS. Refers to physical and job security to the employee which

should be provided with a view to promote security to employee. Includes the followings

Maternity leave.

Health protection benefits. E.g sick benefits.

CONT…… 2. OLD AGE BENEFITS AND RETIREMENT BENEFITS

National Social Security Fund (NSSF)

People Pension Fund (PPF) do provide medical benefit for retired employees.

CONT………….3. PERSONNEL IDENTIFICATION, PARTICIPATION AND STIMULATION BENEFITS

Payment for time not worked, Property fringe benefits like land, building(Tanzania Zambia Railway Authority

Extra pay for time worked E.g. Christmas bonus, food cost subsidy, housing subsidy and recreation benefits

CONT….. 4. PROPERTY FRINGE BENEFITS Organization provide an employee with property. Such property includes the following

Housing LandClothing or uniform

ConclusionGenerally administration faces various problems in provision of fringe benefits.

Managers have little interest in the benefit programs, Employee are unaware of all the benefit to which they are entitled.

Employee have little discretion E.g pension usually is granted to all workers, but younger employee see pensions distant and larger irrelevant.

RecommendationThe government must enforce laws which will ensure the provision of fringe benefits

Managers must create policies and procedures in order to provide equitable benefits to their employees.

Employees must be aware of their rights in order to complain if they are not provided.

Finally, the government must create simple procedures for employees who did not reach age of retirement to get their pension while they need to resign for other factors.