Employee Statutory Benefits

 

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Statutory benefits are employee benefits that are required by law. Each country has its own requirements that employers must meet. These legally mandated benefits typically include medical insurance, pension, and vacation.(Chand, S.)

Other types of benefits include fringe benefits and fringe benefits. Employers are not required to provide these benefits, but they are often used to increase employee satisfaction. Supplementary benefits improve or supplement a country's social or national health care system. Benefits supplement an employee's wages with work-related or health and welfare costs.

Health Insurance

Health insurance is a benefit that covers health and medical expenses. Depending on the country and insurance company, some or all of your medical expenses may be covered by your health insurance. Health insurance includes medical, eye, dental, and other health services and supports.(Haan, K & Bottorof, C.2023)

Leave Entitlements

The right to leave allows employees to take time off from work, including paid, unpaid or partially paid leave. Vacation pay includes vacation days, public holidays, maternity leave and sick leave.(Haan, K & Bottorof, C.2023)

Pensions

A pension is a promise by an employer to make regular payments to an employee's retirement fund. Pension plans may also require contributions from employees that are deducted from the employee's salary. Pension plans can guarantee monthly payments for life or provide a lump sum to employees after retirement.(Haan, K & Bottorof, C.2023)

Death Insurance

Disability insurance provides partial income to workers who are unable to work due to illness or injury. A disability can be the result of an accident, pregnancy, mental health, or long-term illness. Employees covered by disability insurance must be unable to work in their current state.(Haan, K & Bottorof, C.2023)

● Employment insurance system: We are enrolled in employment insurance. However, the type of coverage varies by employer.

Desired employee benefits

❖Bonus: There is no legal obligation to pay a bonus to the employer. In general, bonus payments are at the discretion of the employer, unless specified in the employment contract, and are highly dependent on the employer's financial performance.

❖Retirals

            Retirement age: The retirement age is 55.

            Pension: Men must be paid when she is over 55 and women when she is over 50.

●Employees Provident Fund: Employers and employees contribute to the Employees Provident Fund (EPF) and Employees Trust Fund (ETF). The minimum contributions must be 8% for employees and 12% for employers for EPFs and 3% for employers for ETFs.

Voluntary benefits:

Voluntary benefits are determined and provided by the organization itself. These benefits may include educational facilities, transportation facilities, housing facilities, recreational facilities, consumer cooperatives, subsidized lunches/snacks, child care, etc. Employers are required to provide these facilities, so the level and level of facilities provided will vary by institution. (Chand, S.)

1. Legally - Required Payments:

1. Old-age pension
2. Disability pension
3. Unemployment insurance
4. Workers Compensation

2. Contingent and Deferred Benefits:

1. (Pension plans;
2. Group life insurance
3. Maternity leave

Reference:

Chand, S. (n.d) Benefits to employees: statutory and voluntary benefits (online). Available at      < https://www.yourarticlelibrary.com/employees/benefits-to-employees-statutory-and-voluntary-benefits/ >. [Accesses on 13^th April 2023]

 

Haan, K. Bottorff, C (2023) Employee Benefits in 2023: The Ultimate Guide (online). Available at < https://www.forbes.com/advisor/business/employee-benefits/ >. [Accessed on 13^th April 2023]