Types of Employee Benefits

Employee benefits are indirect forms of compensation offered by an organisation to employees. These compensations can be through services, policies or programs. Some typical examples of employee benefits are paid time off and group health insurance.

The list of employee benefits and perks may vary depending on the organisation and job role. Offering employee benefits in an organisation creates a more engaged and happy environment and makes an employer more appealing to work for.

Also Read: All You Need to Know About Employee Benefit Program

Statutory Benefits

Statutory benefits are the types of employee benefits and perks that are legally mandatory that employers need to provide their employees. These benefits include:

- Employee Provident Fund: EPF, or employee provident fund, is a retirement savings scheme in which both employees and employers contribute a portion of the employee's salary.

- Gratuity: A gratuity is another kind of statutory benefit in which a lump sum amount is paid to employees upon resignation, termination or retirement after at least 5 years of service.

- Maternity and Paternity Benefits: This is another statutory benefit where employees who are expecting a child are entitled to maternity and paternity leave.

• Employee State Insurance (ESI): Employee state insurance is another kind of health insurance scheme that provides medical or health benefits to employees earning below certain thresholds.

Health Insurance benefits

Another type of employee benefit in India is health insurance benefits for employees in unexpected medical emergencies. With health insurance benefits, employees will have access to quality healthcare. Some of the common types of health insurance benefits for employees in India are:

- Group Health Insurance Plans: A group medical insurance policy is a health insurance plan offered by an employer to employees and their dependents. The plan offers a wide range of benefits such as daycare procedures, hospitalisation expenses and more.

- Health Maintenance Organisation: Another type of health insurance benefit is health maintenance organisation plans. Under this, the organisation requires employees to use preferred hospitals and doctors.

- Preferred Provider Organisation: This is another type of health insurance benefit in which employees have the freedom to choose any network provider without a referral.

- Also Read: Benefits of Group Health Insurance Policy for Employees

Retirement Plans

Another type of employee benefit in India is retirement benefits. Retirement plans offer financial assistance to employees after their working years, which is crucial for a stable and comfortable retirement.

-National Pension Scheme: Another type of employee benefit in India is the national pension scheme. It is a government-sponsored scheme designed to offer retirement plans to employees working in the unorganised sector.

-Employee Stock Ownership Program: Another type of employee benefit is an employee stock ownership plan in which employees get an ownership stake in the organisation. Under this, employees receive company stock as part of their retirement benefits.

Flexible Work Arrangements

Flexible work arrangements are another type of employee benefit in India that allows employees to manage their personal and work lives more effectively. Some common examples of flexible work arrangements include:**

-Remote Work Options: The company offers remote work options to employees as a perk. Under this, employees can work from locations outside the office premises.

-Flexible Hours: Another type of benefit is flexible working hours, where employees are allowed to work at different times based on their preferences.

-Part-Time Opportunities: Another benefit offered to employees by organisations is part-time opportunities, where employees work for limited hours.

Paid Time Off

Paid time off is also called leave benefits, where employees can take a day off without losing their salary. Below are some common types of paid time off or leave in India:**

-Sick Leave: Organisations offer sick leave to employees when they get sick. Under this leave benefit, employees can take time off from work to recover without losing their pay.

-Annual Leave: Another type of leave offered to employees is annual leave, which allows employees to use time off from work for personal activities, leisure, etc. Under this, employees are entitled to a certain number of annual leaves in addition to public holidays.

-Bereavement Leave: This is another type of leave benefit offered to employees to help them grieve the loss of their loved ones and manage funeral arrangements or other personal matters.

Employee Assistance Programs

This is another type of employee benefit in India, which is a work-based intervention program created for employees to resolve personal problems that affect their well-being and performance in the company. Some of the common types of employee assistance programs in India are:**

-Counselling Services: This organisation offers affordable, professional and confidential counselling services to employees who are struggling. This will help employees deal with work-related or personal problems more effectively.

-Health and Wellness Programs: These employee assistance programs offer health and wellness initiatives to employees to improve their overall well-being.

-Childcare Assistance: The employee assistance program also offers a range of childcare assistance services to working parents. These services include a childcare locator, referrals to summer camps and more.

Training and Development Opportunities

Another crucial type of employee benefits and perks is training and development opportunities for employees' learning and career growth. These opportunities include:**

-Professional Development Workshops: These workshops help keep employees' skills up to date and increase their productivity and efficiency.

-Skill Enhancement Programs: This is another type of program that is offered to employees to enhance their skills, knowledge and capabilities.

-Also Read: Guide to Employee Benefits in India

Employees who get employee benefits like corporate health insurance or other benefits are more satisfied with their jobs. Enhanced job satisfaction leads to a positive work environment.

• It also helps increase employee retention. When employees are happy at their jobs, they are less likely to leave the organisation, which helps build loyalty.

• It also helps in providing security and stability to employees. When employees feel they are protected with group health insurance or other perks, they worry less about their well-being.

• Employee benefits also enhance productivity and performance. When employees feel supported through benefits like wellness programs and professional development opportunities, they are more likely to be engaged and motivated. This, in turn, leads to higher productivity and better performance.

Also Read: 10 Reasons Why Companies Should Offer Employee Health Insurance

Employee benefits are the best way to keep employees engaged and happy in the workplace. They also help enhance the company's reputation. To attract talent, employers today offer various employee benefits and perks, such as corporate health insurance, retirement benefits and more.

By offering meaningful benefits that align with the values and needs of the workforce, employers not only create a positive working environment but also demonstrate their commitment to their employees’ growth and happiness.

TATA AIG offers SME insurance policies like group health insurance that are customised based on your unique workforce needs.

How to access employee benefits in an organisation?

To access employee benefits in an organisation, employees typically need to review the company’s benefits handbook, where they can find details on eligibility, enrollment procedures and available options.

HR departments or designated benefits coordinators are also valuable resources for guidance and assistance in accessing or making changes to benefits.

Are there any tax implications on corporate health insurance in India?

In India, corporate health insurance premiums paid by employers on behalf of employees are typically not taxable, as they are considered a tax-free perquisite.

Employees can also claim deductions under Section 80D for premiums paid on personal policies but not for employer-paid premiums. Employers can deduct the cost of premiums as a business expense.

Are employee benefits mandatory?

In India, certain employee benefits are mandatory under labour laws, such as provident funds, gratuity, bonuses and maternity leave. However, other benefits like health insurance, paid time off and employee stock options are typically offered at the employer's discretion and are not legally required.