Unless one has been living under a rock, every working professional is aware of the different perks and rewards of being associated with an organization.
Looking at such a large number of employed sections in the country, it is hard to tell who has the complete information and who is simply enjoying the advantages in oblivion.
In any case, you, as an employer, must ensure that your workforce is educated about every employee benefit that you implement in your company. So, if they don’t already know, tell your employees about the gamut of employment benefits that they are eligible to avail under certain terms and conditions as soon as they get employed.
Some of the major categories of employee benefits include:
- Healthcare and Wellness Benefits
- Mediclaim Benefits
- Lifestyle Benefits
- Pension/ Retirement Plans
- Financial Security Benefits
- Disability/ Life Insurance
- Job-Related Benefits
Thus, apart from the basic salary payout, the employees of an organization have the privilege of experiencing a great deal of pros from their current as well as previous employment in some cases.
Let us now walk through the 5 most renowned and essential employee benefits that almost every organization implements in its regime and thus, every working personnel must know about the same:
Employees’ Provident Fund
EPF is the most widely recognized government pension scheme rolled out under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. Controlled by the governing body EPFO, it is a post-retirement income benefit that is compulsorily applicable to all the employees who earn an amount of INR 15,000 a month or less.
Other non-eligible employees can also make this contribution as volunteers. Now organizations that have an employee base of 20 or more must get registered for the EPF scheme. A total of 12% of the Basic Pay + Dearness Allowance is contributed by the employee as well as employer. With the option of online PF withdrawal, the whole process of balance checking and amount withdrawal has become a cakewalk!
Employees’ State Insurance
ESI is a government health insurance policy that the Employees’ State Insurance Corporation (ESIC) runs under the ESI Act, 1948. According to this scheme, the employees whose monthly salary is less than INR 21,000 have to mandatorily contribute towards the ESI funds.
Organizations employing more than 10 staff members have to get registered and payout 3.25% of the Basic Pay + Dearness Allowance of the employees’ monthly remuneration. Now the total ESI contribution is 4% which makes the employee’s share only 0.75% as per the latest amendment in the act.
Gratuity Retirement Benefit
This one is a retirement benefit that is given to the selective employees who successfully complete a term of 5 years with a single organization. So, the extraordinary efforts and dedication of a long-term employee is rewarded by a particular amount at the end of employment. Gratuity calculation is performed by the formula:
G = 15/26 * No. of Completed Years * Last Drawn Salary (Basic Pay + DA)
Work Policy Benefits
These benefits include the relaxation in company policies such as time, attendance, comp offs and leave management, benefits of free training programs and skill development, flexibility in work to promote work-life balance, food & beverage coupons, travel conveyance and the most important warning opportunities to give another chance to the employees for correcting their faults after infringement of any company policy or rules and regulations.
Now, apart from the obvious (formal) government started and organization implemented benefits there are several other benefits that employees ignore and completely forget about. So, it is also important to throw some light on the off-record benefits that employers provide their workforce with.
Examples include recreational activities like gym, yoga, dance classes, etc., fun games, competitions and award functions along with picnics, trips and tours to break the monotony and give employees a breather.