An Understanding of the Laws, Practices and Regulations for an Employee’s Benefits in India
India has two categories of employees, called “workmen” and “non-workmen.” The employee benefits in India and terms of employment might differ between the two categories.
Why Employee Benefits Matter
The benefits that are bestowed on an employee can have a big difference. When the benefits are good, the employee feels valued and happier working in a company that appreciates their hard work. Benefits are something every employee looks forward to because of the possibility of helping their families or their future.
For the employee, it shows them that the employer cares enough to be invested in their happiness. That alone can make a dramatic difference in their work attitude. These benefits are classified as non-financial benefits. This means that they are not included in the salary.
The benefits for the employee working in the country are mandated by the local laws. Some workplaces may offer additional benefits voluntarily. Among the benefits an employee should have as part of their terms of employment include the following:
- Paid annual leave
- Retirement benefits
- Health insurance
- Life insurance
The Types of Benefits Offered in India
Employees who work in India are entitled to the following benefits:
- Short-term benefits
- Social security contributions
- Annual leave
- Sick leave
- Profit-sharing (depending on the company)
- Bonus (depending on the company)
- Long-term Benefits
- Long-service benefits
- Long-term disability benefits
- Gratuity for termination
- Post-Employment Benefits
- Post-employment life insurance (depending on the company)
- Other Benefits
- Employee’s Provident Fund
- Voluntary Provident Fund
- Pension Plans
- Healthcare Benefits
- Wellness Programs
- Miscellaneous Benefits (Depending on the Company)
- Food coupons
- Paid leave
- Financial education
Some major benefits that are also available in India include the following:
- Career growth
- Work-life balance
Are Employee Benefits Important?
Yes, benefits are important for the following reasons:
- It helps to retain top-performing staff.
- It encourages loyalty to the company.
- It helps to boost staff productivity.
- It makes the recruitment process more successful if employees are attracted to your benefits.
An Employer’s Responsibility
It is the employer’s responsibility to ensure that the employee is both satisfied and happy. This is how you bring out the very best in your team. The happier they are, the longer they will stay with your company. These benefits will help boost their levels of productivity and happiness throughout the duration of their service.
The best way to determine the kind of benefits to offer would be to assess the needs of your employees. Design your benefits program based on what would keep them happy and motivated to keep working for your company.