emplyee benifits in india
TRANSCRIPT
-
8/2/2019 Emplyee Benifits in India
1/19
-
8/2/2019 Emplyee Benifits in India
2/19
Population in excess of 1 Billion
35 States and Union Territories
24 Languages
7 Religions
3000 communities
-
8/2/2019 Emplyee Benifits in India
3/19
INDIA
Diversity in language, culture and religion
Does this diversity extend to employeebenefits?
Yes & No
-
8/2/2019 Emplyee Benifits in India
4/19
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 (%)
-
8/2/2019 Emplyee Benifits in India
5/19
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 26
Flexible benefit plan 16
Companies providing benefit (%)
-
8/2/2019 Emplyee Benifits in India
6/19
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 26
Flexible benefit plan 16
Companies providing benefit (%)
-
8/2/2019 Emplyee Benifits in India
7/19
Overview of Employee Benefit Scenario In India
Employee Compensation
Salary Allowances& Bonus
EmployeeBenefits
-
8/2/2019 Emplyee Benifits in India
8/19
-
8/2/2019 Emplyee Benifits in India
9/19
Employee BenefitsInsurance Cos viewpoint
Employee Benefits
Insurance Retirement
DefinedContributionDefinedBenefit
Life Accident Mediclaim LeaveEncashment
Gratuity
Superannuation
-
8/2/2019 Emplyee Benifits in India
10/19
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
-
8/2/2019 Emplyee Benifits in India
11/19
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
-
8/2/2019 Emplyee Benifits in India
12/19
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
-
8/2/2019 Emplyee Benifits in India
13/19
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
-
8/2/2019 Emplyee Benifits in India
14/19
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
-
8/2/2019 Emplyee Benifits in India
15/19
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
-
8/2/2019 Emplyee Benifits in India
16/19
HDFC STANDARD LIFE INSURANCE
HDFC SL is Insuropes network partner in India
-
8/2/2019 Emplyee Benifits in India
17/19
Employee BenefitsInsurance Cos viewpoint
Employee Benefits
Insurance Retirement
DefinedContribution
DefinedBenefit
Life Accident Mediclaim LeaveEncashment
Gratuity
Superannuation
-
8/2/2019 Emplyee Benifits in India
18/19
Employee BenefitsInsurance Cos viewpoint
Employee Benefits
Insurance Retirement
DefinedContribution
DefinedBenefit
Life Accident Mediclaim LeaveEncashment
Gratuity
Superannuation
-
8/2/2019 Emplyee Benifits in India
19/19
Contact Details
Sanjeev Kapur
Head - Group Sales (+91) 98203 48755
Vijay Vaidyanathan
Manager Group Sales
(+91) 98206 11998
mailto:[email protected]:[email protected]:[email protected]:[email protected]