Employee Welfare &

Benefits
 “Employee welfare means anything done for the
Employee comfort and improvement, intellectual or social of
the employees over and above the wages paid
Welfare which is not necessity of the industry”
– Arthur James Todd
Benefits
• Indirect financial and nonfinancial payments employees receives for
continuing the employment in an organization.

• E.g. Health insurance, Life insurance, Pensions, Sick leave, Childcare

assistance etc.
Law of Land guidelines for benefits and
welfare - INDIA

Factories act Plantation labor Sales promotion Shops and

1948 act 1951 employees act Commercial
1976 Establishments
act
Objectives of benefits

Improves goodwill
Attract manpower to
Retaining employees. and public image of
company.
company.

Increase employee Increase employee

morale and loyalty ,motivation
professional ethics. and productivity.
 MANDATORY
• ESI
• PF
• NPS
• Gratuity
Benefits in • Maternity leave

Indian Context VOLUNTARY

• Insurance top-up
• Accidents insurance
• Personal loans
• Special leaves
Compensation - Trends
Supplemental(OvertimePaid Leave
,bonuses etc) 7%
4%
Insurance including Health
8%

Retirement& Savings
4%

Legally required
8%

Wages and salaries

69%

Relative importance of Employer cost for employee compensation(Private industry US 2015)

Benefits Types

Supplemental pay
Retirement benefits
benefits

Personal services family Flexible benefits

friendly benefits programs
Supplemental Pay Benefits
• Unemployment insurance
• Vacations & Holidays
• Sick Leave
• Paternity and Maternity Leave
• Severance pay
• Supplemental unemployment benefits
• Workers compensation
• Hospitalization, health & Disability insurance
• Long term care
Retirement Benefits
• Social security (ESI, PF)
• Pension Plans
Personal Services Family Friendly Benefits
• Personal services (Legal Service, Counseling, Credit Unions etc.)
• Family friendly or work life balance benefits (Childcare, Eldercare,
Fitness)
• Other personal services benefits
• Diversity counts
• Executive prerequisites
Flexible Benefits Programs
• Cafeteria approach
• Flexible work schedule
 • Today employee welfare and benefits are
greatly accepted by companies. It has been a
vital part of Human resource management.
Conclusion Employers use it as a tool to motivate and
increase the wellbeing of its work force and
through which the productivity of its people.
Thank you