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Abstract. Fringe benefits have increased rapidly during recent decades. While determinants of manufacturing workers' fringes have been investigated, little information is available about those of nonmanufacturing workers. In this study we investigate factors that determine the levels of fringes of office and nonoffice workers provided by private‐sector nonmanufacturing establishments. The factors are classified by characteristics of employees (such as income, marginal tax rate, union status), of firms (such as size, location and industry), and other variables. Using regression analysis we find employee income, marginal tax rate, union status and firm size consistently and positively related to fringe benefits. Other variables’coefficients in the equation usually possess the sign predicted by the model but sometimes do not attain statistical significance at conventional levels. We conclude that economic models of fringe …