types of employee benefits

EMPLOYEE BENEFITS AND SERVICES

Employee benefits

• Employee benefits are elements of remuneration given in addition to various forms of cash payments

• Employee benefits also include elements which are not strictly remuneration.

Objectives• Increase commitment to organization• Provide for actual or perceived personal needs

of employees• Demonstrate that company cares for its

employees• Ensure that an attractive and competitive total

remuneration package is given

Employee benefits policies

• Range of benefits provided• Government policy• Trade unions• Market consideration

Employee Services

• Transport facility• Eating facility• Child care Facility• Financing and Legal Services• Purchasing Services• Housing Services

Types of Employee benefits

Basic benefits (Mandatory)

Career Enrichment (non-mandatory)

Quality of work and Life (non-mandatory)

Further incentive benefits (Non- Mandatory)

Employee Benefits

Basic Benefits

• Annual leave• Accident and disability insurance• Maternity paid leave• Medical insurance

Career Enrichment Benefits

• Educational Assistance or tuition reimbursement

• Rewards for additional certificates• Rewards for advanced degrees• Reimbursement for general training

course• Mentoring and counseling

Quality of Work and Life• Paid and unpaid Parental Leave• Day Care• Part-time working or flexible working

hours• Monetary assistance for day care and

elder care

Further incentive benefits

• Stock ownership plan• Profit sharing scheme • Pension or savings plan• Company car• Housing

Fringe Benefits

Fringe benefits in India

• According to employers Federation of India fringe benefits in our country is 2148.3 million in wages & it was about 21.3 % of the total wages of that year.

• Fringe benefits were high in mining & plantation industry.

• Low in manufacturing industry.

• Considerable proportion of fringe benefits in the shape of monetory bonus.

• Various kinds of bonus include profit bonus, attendence bonus, service bonus, gratuity payments etc.

Payments for time not worked

• Payments were substantial in manufacturing , mining 7 plantation.

• Industries which spent high on this is cigarette manufacturing and distributing, petroleum refining & selling chemical & allied industries and ship building.

Statutory fringe benefits

It include gratuity and pension payments, employers contribution to employees PF account 7 health insurance scheme.

Employers contribution to employee’s PF-4.23%

Expenditure on ESI by- manufacturing .36%

For gratuity - .59%

Voluntary benefits• It includes retirement benefits,

medical care, compensation for injuries & disablement , subsidized food & housing, educational & cultural of facilities , payment on life insurance premium, the maintenance of canteens.

• Benefits accounted for 9.40 % of total wage bill in the plantations industry against 3.74 % & 4.12 %in mining and manufacturing.

Employee Services

The mission of Employee Services is to establish innovative, employee friendly policies and management practices; foster a healthy, productive, rewarding work environment; and offer administrative and consulting services to the employees.

It includes• Services related to type of work

performed• Recreational, social and cultural

programmes• Eating facilities• Transportation facilities• Child care facilities• Housing facilities• Financial and legal services• Purchasing services• Educational services• Medical services• Flexitime

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