Employee benefits form an integral part of any comprehensive compensation package and serve as key factors in attracting and retaining talent. In India, these benefits are diverse and tailored to meet the unique cultural, social, and economic needs of the workforce. Among these, group health insurance stands out as a crucial component, offering valuable health coverage to employees and their families.
Let's delve into the other types of employee benefits offered in India.
Read More: Statutory Benefits in India
What are Employee Benefits?
Benefits can be insurance, medical, profit sharing, stock options, paid time off, dental, life, retirement benefits, and many more. Such benefits are apart from the basic salary and wages.
Employee benefits in India also include pension schemes, provident funds, and many groups or individual insurance packages, including perks like mobile phone charges, transport allowance, internet packages, and many more.
The benefits are given per the company requirements and different in different companies. For example, in the US, health insurance is a common strategy to retain the best employees. In France, restaurant vouchers are the best way to attract employees.
Most companies successfully retain their best employees by giving them benefits above the salary, although there are others who are unable to retain their employees even after offering perks. At the end of the day, retention only depends on the employee's personal decision.
You may also like reading Group Term Life Insurance by Plum.
List of Employee Benefits in India
Employee benefits have several advantages to the organisation or company. Most companies are satisfied much more than employees after offering employee benefits. Employee benefits packages should be customised according to the employee's requirement and allowed by the employer's budget. There are some employee benefits in India that are helpful for both and are discussed below:
1. Statutory Benefits
Statutory benefits are a set of rights and privileges that employees in India are entitled. It is one of the Employee Benefits in India. These benefits can include medical insurance, provident fund, gratuity, maternity leave, bonus payment and vacation time. All companies must offer at least some statutory benefits to their employees, regardless of size or industry. It’s essential to consult with an employment lawyer if you have any questions about which statutory benefits your company offers its employees. Additionally, review your employee handbook to ensure all benefits are clearly outlined and understood.
2. Public Holidays
India's public holidays primarily follow a regional pattern as opposed to being nationwide. Only three public holidays are recognized at a national level: Republic Day (January 26th), Independence Day (August 15th), and Gandhi Jayanti, celebrating Mahatma Gandhi's birthday (October 2nd).
Given that each state has its own distinct holiday calendar, it's a common practice among Indian employers to grant employees 10 days of paid leave. This provision allows employees the flexibility to observe holidays as per their individual preferences.
3. Health and Group Insurance Plans
Health is the priority of every individual. It is equally essential for every individual to secure their family’s health. A company that offers both health and group insurance benefits to its employees will increase the retention rate of the best employees. Providing these benefits highlights the organisation's values in the eyes of potential employees.
4. Dental Insurance Plans
Dental Insurance Plans is also one of Employee Benefits in India. Dental treatment is costly and painful. Every individual can not afford it with a minimum salary. A company that offers its employees dental insurance plans as a perk will secure the company's future. No employee will leave the company after getting dental insurance as a benefit without any deduction in basic wage and salary.
5. Life Insurance Plans
Life insurance is the secured plan for the family of every individual. Getting these plans from a company where you spend lots of time or give your best is a blessing. Such employee benefits in india boost the morale of employees to work harder for the company to achieve its goals. Their dedication to working also secures the life of their loved ones after their death.
6. Retirement Plans
Retirement is when employees permanently leave the job and are dependent on their family members and children. If employees get any income after their retirement at regular intervals will push the employees to give their best towards their work.
7. Daycare Provisions or Child Care Support
Daycare Provisions or Child Care Support is also another employee benefit in india provided by the corresponding employer. For employees rejoining work after maternity leave in organizations housing 50 or more staff members, they are assured access to child care facilities funded by their employers. The employer has the flexibility to either set up these facilities within the premises, collaborate with an external child care service provider, or allocate a suitable allowance to the employee for this purpose. It should be noted, however, that this benefit is not applicable to those mothers who are working remotely.
8. Paid Leaves
Every employee will work harder if they get paid leaves for better working and fulfilling their given target. Getting paid leaves are helpful for every employee. Employees enjoy the paid leaves at the time of vacation and after returning to office work with more dedication to achieving the next target.
9. Maternity Leaves
It's now a mandate for all Indian corporations to offer maternity leave to their employees. An employee qualifies for this leave after being employed with the company for a minimum of 80 days in the last 12 months.
The length of maternity leave varies by state; however, the national government of India has set the standard at 26 weeks of paid leave for employees having fewer than two children (excluding the one on the way) and 12 weeks for those with two or more children. The law also allows 12 weeks of maternity leave for adopting mothers and mothers of children born through surrogacy.
Employees have the option to avail their maternity leave eight weeks prior to their expected delivery date. Post-delivery, the new mothers are entitled to at least two additional breaks during the workday for nursing until the child reaches 15 months of age.
Most companies use this method to retain their highly profitable employees. Employee benefits were first started in 1948 by the employee's state insurance act. The results from it are beneficial for both employers and employees.
10. Relocation Allowance
Many companies understand the expenses that employees bear when relocating from one city to another for work-related purposes. To address this, they offer a relocation allowance, enabling the employees to reimburse for the cost of their relocation. Additionally, companies often arrange temporary accommodation for the employees during the initial phase of their employment, ensuring a comfortable transition until they secure their own housing.
11. Employee Wellness Programs
These programs can include regular health check-ups, gym memberships, yoga classes, and even wellness workshops, promoting a culture of health and wellness.
12. Employee Assistance Programs
Employee Assistance Programs (EAPs) provide counseling and supportive resources for employees grappling with personal or professional challenges. These initiatives facilitate the management of mental health and well-being for employees, ultimately enhancing their work satisfaction and productivity levels.
13. Profit-Sharing Plans
Profit is the only way to change technology with upgraded machines and equipment. Profit-sharing plans are commodities for achieving this goal. If employees get a share in the company's profit, they work much harder without any leisure to achieve the target profit so that they get their share in it.
14. Sales Commission
Monetary benefits also include sales commission which is the extra benefit added to the basic salary for achieving a given sales target. Commission can be in the form of cash in hand and gifts such as bags, awards, vehicles, and many more. It is the best and most straightforward way to retain employees.
15. Restaurant Vouchers
Getting free vouchers for clothes, accessories, meals, and shoes is the cut-off expense of a person. The employee will work with a core heart to get their vouchers. It can be helpful for the company that wants to spend less and retain the best employees in the company.
16. Work from Home Facility
Due to lots of responsibilities at home, such as their sick grandparents, care of a few months child, and substantial travelling expenses, some employees will drop their job. If a company gives its employees the option to work from home, it will be able to retain them.
Bonus is the employee's reward for achieving the target. Bonuses can also be in the form of promotions such as general manager, area sales manager, taking part in decision making, and many more. When the employees get bonuses frequently for every task, they work with more boost, which also benefits the company.
18. Transport Allowance
Numerous corporations extend shuttle services to their employees to facilitate hassle-free commuting to and from the workplace. This provision primarily enhances the comfort and safety of those employees who often travel late due to professional responsibilities.
Implementing the option of availing taxi or shuttle services is an effective method of guaranteeing that employees can commute securely and comfortably. In addition, to uphold the dignity of their positions, vehicles may also be provided to members of the senior management in some organizations. Thus, this is another employee benefit in india provided by the employers respectively.
Worker benefits are common and essential for the company's welfare. For maintaining a positive atmosphere in the company, it is necessary to give employee benefits at regular intervals.
It boosts their morale towards working and unlocks their maximum potential. It is the best and easiest way to retain better employees. Moreover, employee benefits schemes also attract potential employees outside the organisation.
Check-out corporate insurance plans here.
Learn everything about the business of talent that you don’t learn in business school