Which of the following is an example of a fringe benefit?

Fringe benefits are forms of indirect compensation provided to employees beyond their regular salary or wages. These benefits are designed to enhance the overall compensation package and can improve job satisfaction and retention.

A company car is a classic example of a fringe benefit because it is a non-wage form of compensation provided to employees. It typically serves both personal and professional needs, offering convenience and value beyond the cash compensation received. This type of benefit not only fulfills a functional purpose but also implies a level of status and support from the employer, which can positively impact employee morale and loyalty.

In contrast, options like health insurance provided by the government or performance-based pay are either direct forms of compensation or mandated benefits that do not fall under the category of fringe benefits. A subsidy for public transport, while useful, may not be as commonly classified as a fringe benefit when compared to the more traditional offerings like vehicles or housing allowances.