Starting a business or company requires too many things like basic knowledge of the industry, funding sources, legal certification, etc along with capable employees or human resource. Ranging from SMEs to big corporate houses all need good employee to see their business growing. Good employees are the priceless assets of the company. Companies offer employee benefits in terms of health or life insurance policies as gratitude to the worker’s effort. Also it helps the business owners to attract new and productive workers.
Definition of “Employee Benefits” for employees:
Employee benefits are like a benefit package for the employees. It helps them to plan for accidents like becoming injured or ill. It also helps employees in their old age as a source of income against daily expenses.
Definition of “Employee Benefits” for employers:
It is a very effective and useful benefits package from the employers towards productive employees. It helps in getting new employees and be the favorite of loyal staffs.
An employee benefit includes:
In terms of defined contribution pension, both employee and the employer deposit a set amount of cash every year in the pension account. What the both investors put in reflected as the calculated amount of the pension, while the employee retires. Nowadays most of the private sector companies showing their interest in it.
Another kind of pension i.e. defined benefit is not readily accepted by the small or private companies. Through this plan the employee gets the pension amount according to the calculation of the final salary and the time period of employment.
2. Life Insurance:
Death in service or Life Insurance compensates a tax-free lump sum if a staff dies. It is offered to give support for the persons who depend on the dead employee financially. It's calculated as a definite multiplication of their salary.
3. Sick Pay:
Statutory Sick Pay covers the employees for their first six months off due to...