Emplyee Benifits in India

8/2/2019 Emplyee Benifits in India

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Population in excess of 1 Billion

35 States and Union Territories

24 Languages

7 Religions

3000 communities


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INDIA

Diversity in language, culture and religion

Does this diversity extend to employeebenefits?

Yes & No


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Analysed items 2004

House Rent Allowance 97

Gratuity 95

Housing Loan 91Medical reimbursement/ allowance 90

Insurance 89

Leave Travel allowance 87

Hospitalisation 86

Variable Bonus 85

Conveyance allowance 84

Superannuation 61

Car Loan 54

Social/ Sports club membership 51

Incentive/ Sales Commission 44

Hard Furnishing 39

Medical check-up 39

Fixed Bonus 33

Other allowances 26Flexible benefit plan 16

Companies providing benefit (%)


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Analysed items 2004


Gratuity 95


Insurance 89


Hospitalisation 86

Variable Bonus 85


Superannuation 61

Car Loan 54



Hard Furnishing 39

Medical check-up 39

Fixed Bonus 33

Other allowances 26

Flexible benefit plan 16



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Analysed items 2004


Gratuity 95


Insurance 89


Hospitalisation 86

Variable Bonus 85


Superannuation 61

Car Loan 54



Hard Furnishing 39

Medical check-up 39

Fixed Bonus 33

Other allowances 26

Flexible benefit plan 16



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Overview of Employee Benefit Scenario In India

Employee Compensation

Salary Allowances& Bonus

EmployeeBenefits


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Employee BenefitsInsurance Cos viewpoint

Employee Benefits

Insurance Retirement

DefinedContributionDefinedBenefit

Life Accident Mediclaim LeaveEncashment

Gratuity

Superannuation


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Mediclaim Insurance

Reimbursement of medical expenses following hospitalization

Cash less hospitalization facility available under certain plans

Tax deduction available for the business

Accident InsuranceCan offer compensation for any/all of the following:

Accidental death, disability

Medical expenses for treatment post accident

List of exclusions

BOTH BENEFITS ARE OFFERED BY NON-LIFE INSURANCE COMPANIES


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Life Insurance

Benefit payable on accidental/natural death (limited exclusions)

Convenient eligibility conditions

Additional Optional riders

PROVIDED BY LIFE INSURANCE COMPANIES

Life InsuranceTrends Monopoly of one single company so far

Increasing popularity amongst employers/ employees

General cover is about 3 to 5 times the gross annual salary

Companies with huge staff strength opt for profit-sharing


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Leave EncashmentDefined benefit

For whom?

If company offers encashment of leave, all employees

What benefit?

Will be based on the company policy.

Normallyx days salary for each accumulated day ofleave

How Funded?

Institute of Chartered Accountants of India require

that a provision be made for the liability. No special tax benefits for self-funding through a trust

Insurance plans available to manage the funds


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GratuityDefined Benefit

For whom? Engaged in Factories, Mines, Plantations, Railways,

Shops and establishments notified by Government

In service for 5 successive years

What benefit? 15 days wages for each year of service

Maximum limit Rs 3,50,000/

7 days wages per season for seasonal occupation

How Funded? Can be funded our unfunded.

Special tax concessions if funded through a trust orinsurance company


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SuperannuationDefined Contribution/ benefit

For whom?

Non-mandatory, defined by company policy

What benefit?

Can be defined benefit(certain formula of last drawnsalary) /defined contribution(certain %age of salary

every month contributed to a fund)

Can be different for different grades

How Funded? Can be funded our unfunded.

Special tax concessions if funded through a trust or

insurance company


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Retirement Benefits - Trends

Only one life insurance company in the market till 2000

Offered a cash-accumulation conventional scheme

More and more companies now funding through Insurance

Unit-linkeda preferred platform

Pensions benefits - from Defined Benefit to defined contribution


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HDFC STANDARD LIFE INSURANCE

HDFC SL is Insuropes network partner in India


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Employee Benefits


DefinedContribution

DefinedBenefit


Gratuity

Superannuation


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Employee Benefits


DefinedContribution

DefinedBenefit


Gratuity

Superannuation


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Contact Details

Sanjeev Kapur

Head - Group Sales (+91) 98203 48755

[email protected]

Vijay Vaidyanathan

Manager Group Sales

(+91) 98206 11998

[email protected]
mailto:[email protected]:[email protected]:[email protected]:[email protected]

Documents

Emplyee Benifits in India