Apart from a good workplace and a satisfactory salary package, an employee thrives for some kind of security from his organization. This security is mostly monetary but can also be non monetary on rare instances. This need for security can be due to a series of uncertain events that the employee might be subjected to in the future. The need for this sense of security of every individual should be fulfilled by the organization that he works for. This will help the individual work in the present with a great deal of ease and comfort.
The company provides medical insurance to its employees that safeguards the employees from incurring the medical expenses required for treatment when affected with illness. This insurance in most cases covers the cost of physician and surgeon fees along with hospital accommodation charges and cost of medicines. Additional benefits vary from company to company and may or may not include dental and optical costs. Either a portion or the entire monthly premium of the employee is paid by the employer. In the case of the former, the individual might have to pay a percentage of the premium every month. Few companies may also provide medical insurance coverage for the employee’s immediate family.
Various retirement programs are prevalent in the Indian Corporate world today. Different organizations adhere to different programs based on what they believe will be the most advantageous for their employees.
Employees Provident Fund is a guaranteed retirement plan which is administered by the Employees Provident Fund Organization. According to this, employees contribute 12% of their basic salary with an option of contributing a further 12% to the fund. The employer also contributes 12% of the employee’s basic salary to the fund out of which 8.33% is reserved as pension amount and the remaining 3.67% is deposited in the fund.
The way Pension amounts are determined have been mentioned above. However it has to be understood that in India, the pension scheme benefit is restricted to limited industries like banks, railways, etc. Mostly it is encouraged by Government companies. Private organizations hardly ever hardly ever sponsor pension plans in India.
Wellness Programs are more focused on the health aspect of the employees. They are different from medical insurance in the sense that it does not help cater to the expenses of the employee when he is inflicted with some disease. It ensures that the employee does not acquire the disease in the first place. Organizations these days recognize the importance of employee health as it is directly proportional to the success of the organization. They cater to their employees by offering them gym memberships and preventive health check ups. Additional features may include yoga & meditation classes, physiotherapy, etc. These wellness programs are either completely funded by the company or partially funded in which case the employee has to contribute a particular percentage for attaining the services of the wellness program.
Other Popular Benefits
Employee benefits can be catered to in various other ways
Leave encashment programs are very popular in India where employees have the liberty to encash their untaken leaves in a year or can carry forward them into the next year. This is a well accepted benefit scheme popular among most organizations in India.
Big companies also provide food coupons for their employees for the purpose of lunch from an on-site canteen. Food coupons can be provided up to Rs 50 per meal for every working day under current income tax rules.
Financial Education is also provided to the employees from the initial stages of their service so that they do not have to deal with financial anxiety as they near their retirement. Managing finances is an art and the power of saving is inculcated among employees so that they stand in good stead in the future.