Cash is not enough today to recruit and retain top talent for your business. Providing an attractive benefits plan is just as important . Employee benefits are given to an employee in the form of incentives, providing insurance, over time payment or in non-financial form like giving training & development for employees to develop their career and most importantly providing flexible working hours to balance between work and life of employees.
Find out what your employees want
It's critical to recognize just how important a competitive benefits package can be in recruiting the best staff possible. Gone those days when salary in and of itself was lure enough.
In a recent survey, employees listed flexible work arrangements along with additional fixed pay and higher incentives as the top three preferred benefits.
"Competitive organizations (organisations which produce core products or services, and have international demand for those products or services. eg:software, telecom and automobile.), whether they are big or small, with benefits programs will not be able to attract employees —especially if you don't provide the most fundamental programs such as health care, disability insurance, and things like that. It's almost mandatory," says Lloyd Foight, a benefits consultant with the Ross Companies in New York.
These basic employee benefits, from employee health insurance benefits to retirement plans, are all worth consideration. If your business doesn't currently offer any compensation other than salary or hourly wages, you might find that your staff members are more loyal when you provide additional incentives
These basic employee benefits, from employee health insurance benefits to retirement plans, are all worth consideration. If your business doesn't currently offer any compensation other than salary or hourly wages, you might find that your staff members are more loyal when you provide additional incentives
Facts:
Whoever says whatever, money/income is ultimate consideration for any employee who wants to shift or change organisation wherever it is located.
40% Indians are cautious about moving to West for jobs due to economic slowdown, which tells that money factor plays a key role in attracting and retaining employees in an organisation wherever it is located. Good salary combined with benefits such as extra allowances and perks are also playing a major role in bringing back professionals to India, according to 25% of the employers in the TimesJob.com study.
40% Indians are cautious about moving to West for jobs due to economic slowdown, which tells that money factor plays a key role in attracting and retaining employees in an organisation wherever it is located. Good salary combined with benefits such as extra allowances and perks are also playing a major role in bringing back professionals to India, according to 25% of the employers in the TimesJob.com study.
--Times of India,9-4-14
The two essentials for every plan
While you might be faced with a variety of requests, experts say that there are two essentials for every plan: medical coverage and a retirement plan. Other coverage such as dental, disability, and life insurance often are considered extras. ---Microsoft
Fringe Benefits
An employment benefit given in addition to one's wages or salary.The term "fringe benefits" was coined by the War Labor Board during World War II to describe the various indirect benefits which industry had devised to attract and retain labor when direct wage increases were prohibited.
Old age payments, Paid vacations,Survivor payments, Disability and health insurance Profit sharing, Pension plans, Bonuses, Life insurance, Education payments,Dental insurance, Worker's compensation, Accident insurance, Unemployment compensation,Discounts on goods/services purchased from the company and Child care.
Old age payments, Paid vacations,Survivor payments, Disability and health insurance Profit sharing, Pension plans, Bonuses, Life insurance, Education payments,Dental insurance, Worker's compensation, Accident insurance, Unemployment compensation,Discounts on goods/services purchased from the company and Child care.
Facts [+]
The Timberland Company, best known for its outdoor wear and hiking boots, regularly makes Fortune's annual list of best companies to work for. In addition to core benefits, Timberland offers its employees several unique benefits, such as $3,000 credit toward a hybrid car, 40 paid hours per year of volunteer work in the community, sabbaticals, and everyday casual dress.
Drugmaker Ely Lilly ranks as one of the best American companies to work for as compiled by CNN and Money magazine. Lilly helps its employees stay healthy with free health screens and an on-site clinic of physicians, psychologists, and nurses that handles 50,000 visits a year. Unique to Lilly is its perk to pregnant employees that provides a paid month off before their due date.
KEY EMPLOYEE BENEFITS IN COMPETITION ORGANISATIONS;
VACATIONSEmployee benefits includes vacations for employees for certain period of time during the employment. Jobs under present corporate environment are stressful which eventually effect the performance of the employee over a period of time. vacations makes employee re-energize and makes employee to forget about work stress what they had faced in the job. Because, vacations are often spent with their friends or family. Now a days companies are offering vacation packages to their key employees, good performers and those who be productive to company. Vacations for employees act as the motivating factor and also helps to retain employee for long period in the organization.
Facts [+]
Italy, France, and Germany top the list of average number of vacation days per year, according to the World Tourism Organization. Italians receive an average of forty-two vacation days per year. Korea, Japan, and the U.S. are at the bottom of the list. Americans receive an average of thirteen vacation days per year.
American workers receive on average about twelve vacation days a year. The typical American worker gives back an average of three vacation days, according to a recent survey by Expedia.com, leaving nearly 421 million vacation days unused. The survey estimates that 31 percent of employees do not take all their vacation days.
PAID TIME OFF
Employers know that their employees need a break once in a while. Employers are doing several things to address personal time off. Organizations are streamlining their vacation time, sick time, personal days, holidays, and volunteer time into a single "paid time off" category.That's why companies offer paid time off (PTO) in the form of vacation days, holidays, personal leave, and sick leave .Many companies have done away with "sick leave" and "vacation" as employee benefits and have replaced them with "paid time off" (PTO).
Paid time off is a bank of hours from which employees can draw. Employers credit additional hours to their employees "banks", usually every pay period. Most US employers offer their workers 10 paid holidays, 2 weeks vacation, two personal days, and 8 sick leave days per year. Under a PTO plan, the employees would be credited with 30 days paid time off instead (10+10+2+8).
The definition of paid time off is any time not worked by an employee for which the regular rate, a fixed or a prorated amount of pay, is accrued and paid to the employee.
As mentioned above, some employers prefer to give their employees a paid time off plan. This is a more flexible arrangement that gives the employee a set amount of days off to be used at the employee's discretion. These days can be used for sick time, personal days, vacations, or for whatever reason the employee may need time off. Like vacation and other forms of time off, the amount of days off generally accumulates through years of service and the level of the employee within the organization.
Facts [+]
Two of every three sick days used by U.S. workers were used for something other than illness, according to a survey by human resources information company CCH. The survey of more than 1.3 million workers found that family issues, personal needs, and stress were the rationale for taking more than half of all sick days. About 32% of sick days were actually used for personal illness
Two of every three sick days used by U.S. workers were used for something other than illness, according to a survey by human resources information company CCH. The survey of more than 1.3 million workers found that family issues, personal needs, and stress were the rationale for taking more than half of all sick days. About 32% of sick days were actually used for personal illness
PERQUISITES
The term perqs (also perks) is often used colloquially to refer to those benefits of a more discretionary nature. Often, perks are given to employees who are doing notably well and/or have seniority. Common perks are take-home vehicles, hotel stays, free refreshments, leisure activities on work time (golf, etc.), stationery, allowances for lunch, and—when multiple choices exist—first choice of such things as job assignments and vacation scheduling.
Facts
Some unique perks put Worthington Industries in Fortune Magazine's 100 Best Places to Work list. Worthington offers its factory workers monthly profit sharing that augments monthly salaries by 40% to 100%. Worthington employees who join the company wellness program get their entire health insurance premiums covered. Also, employees are offered onsite haircuts for just $4.
Executive Perks
A recent report from Compdata Surveys reveals that cellular phones are the most popular executive perks.
The Executive Compensation 2008/2009 survey of 5,300 organizations found that 60.2% offered cellular phones to executives as a perk with 43.8% of employers providing laptops or home PCs in 2008. Fewer than a third of organizations in the survey provided car allowances or company cars to employees.The report analyzes both the national and regional data collected from 5,300 organizations across the United States with almost 25,000 incumbents. 45 executive and senior management positions were analyzed by base pay and total cash compensation.
The frequency of most executive perks on the revenue size of employing organizations but cellular phones were offered by over half of the companies surveyed, regardless of size. Company cars were also offered by 20% to 30% of surveyed organizations across the board. But businesses with revenues over $20 million were the most likely to provide executives with laptops or home PCs.
Perks mentioned in the survey included:
- cell phones (60.2%)
- car allowance (31.3%)
- company car (26.4%)
- supplemental life insurance (26.2%)
- voluntary deferred compensation programs (18.8%)
- annual physical exam (17.6%)
- supplemental disability program (16.9%)
- club membership(s) (15.7%)
- supplemental executive retirement plans (10.3%)
- supplemental medical insurance (6.2%)
- legal counseling (5.6%)
- post-retirement insurance (4.6%)
- supplemental vacations (4.5%)
- airline VIP lounge membership (3.1%)
- dependent tuition reimbursement (3.3%)
The purpose of the benefits is to increase the economic security of employees.
Employers who hope to retain solid, hard-working employees should be prepared to offer basic employee benefits. In addition to salary, good benefits provide important resources that not only help build a positive working relationship between employer and employee but also promote good work habits and financial practices.
Employee benefits will vary depending on the employer, and it is important for business owners to carefully consider their options. For example, the type of industry in which your business falls will help determine the types of basic employee benefits important to your staff. A job that requires employees to work outside in inclement weather, for example, might offer more paid sick leave than an indoor office position.
Employee Health Insurance Benefits
The most fundamental of all basic employee benefits is health insurance, which should be provided so that staff members can visit the doctor when they fall ill. Not only does this help the employee save money, but it also helps the employer by encouraging staff members to get treatment, thus allowing them to return to work more quickly and not spread illness to the rest of the staff.
INDIA
The Employees, State Insurance Act (ESI Act) was enacted with the object of introducing a scheme of health insurance for industrial workers. The scheme envisaged by it is one of compulsory State Insurance providing for certain benefits in the event of sickness, maternity and employment injury to workmen employed in or in connection with the work in factories other than seasonal factories.
Applicability
- Under Section 2(12) The Act is applicable to the factories employing 10 or more persons irrespective of whether power is used in the process of manufacturing or not.
- Under Section 1(5) of the Act, the Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatre, road motor transport undertakings and newspaper establishment employing 20 or more persons.
- Further, u/s 1(5) of the Act, the Scheme has been extended to Private Medical and Educational Institutions employing 20 or more persons in certain States .
- The State Govt. has been requested to issue notification under Section 1(5) on the lines of Section 2(12) keeping the threshold limit for coverage as 10 employees instead of 20.
- The existing wage-limit for coverage under the Act, is Rs.15,000/- per month
USA
Employee health insurance benefits should include health plans that allow employees to visit doctors in close physical proximity and assist with prescription purposes. There are several different options available to business owners, from PPOs to HMOs, so it is important to consider each option carefully.
Most Americans who have health insurance through their employer (and many who are self-insured) are enrolled in some type of a managed care plan - either an HMO or PPO. The most common types of managed care plans are health maintenance organizations (HMOs) and preferred provider organizations (PPOs).
Preferred Provider Organization. The PPO offers choice and flexibility, but is often more expensive. With a PPO, patients can see any doctor they wish, or visit any hospital they choose, usually within a preferred network of providers. One does not have to designate a primary care physician, and one can usually see any specialist without referral.
Health Maintenance Organization. HMO requires that patients see only doctors or hospitals on their list of providers, and in addition, patients must choose a primary care physician who will direct care and refer patients to approved specialists. This type of organization offers fewer choices and may make changing doctors or seeking second opinions more difficult. Generally, the HMO will not, without prior approval, cover medical expenses incurred by seeing someone who is not contracted with the HMO, but usually will have defined coverage for emergency medical care when patients travel outside the normal coverage area. The Health Maintenance Organization Act of 1973 required employers with 25 or more employees to offer federally certified HMO options if the employer offers traditional healthcare options.
Point-of-service (POS) plans. A third type of health plan -- known as a point-of-service (POS) plan – offers a combination of PPO health insurance and HMO insurance services. In fact, the "point of service" in the name reflects the fact that you make your choice of whether to use HMO or PPO services each time you see a provider.
Generally, a POS has rules similar to HMO insurance, but a POS will allow you to see an out-of-network physician for a higher fee. Some HMOs actually include a POS plan so you can see out-of-network physicians.
Point-of-service (POS) plans. A third type of health plan -- known as a point-of-service (POS) plan – offers a combination of PPO health insurance and HMO insurance services. In fact, the "point of service" in the name reflects the fact that you make your choice of whether to use HMO or PPO services each time you see a provider.
Generally, a POS has rules similar to HMO insurance, but a POS will allow you to see an out-of-network physician for a higher fee. Some HMOs actually include a POS plan so you can see out-of-network physicians.
Facts [+]PAID LEAVE
According to the U.S. Department of Labor, nearly five million people who desire full-time jobs have settled for part-time work, up nearly 30% from five years earlier. Only 17% of part-time workers get health insurance benefits from employers, and only 21% of part-timers are included in employers' pension plans, according to the Economic Policy Institute.
Similar to employee health insurance benefits, paid leave allows sick employees to stay home and recover without jeopardizing their paychecks. Paid leave, like paid vacation, can take many forms. For example, maternity and paternity leave, examples of paid sick leave, are given to new parents who need to stay home with newborn children. Paid leave can also apply to employees who come down with the common cold or flu.
In some cases, these basic employee benefits are called "personal days," which implies that they can be used for reasons other than injury or illness. Some employees simply need a mental health day to recuperate from the stress at work; personal days give them that option.
A retirement plan allows employees to prepare for their futures, securing their financial stability after they have aged out of the work force. Furthermore, it is easier for businesses to offer retirement benefits than most people think.
USA
A 401(k) plan is arguably the most popular of the basic employee benefits. It allows employees to contribute tax-deferred earnings to their retirement plans while the employer assists. Simple 401(k) options are available to small businesses with fewer than 100 employees.
Mandatory or Compulsory Benefits
Some small employers may wonder what employee benefits they're legally required to provide. Believe it or not, the only legally required benefit employers are obligated to maintain is workers' compensation insurance — or be self-insured.
Although most employee benefits are provided at the employer’s discretion, others are required by law. Legally required benefits include Social Security, unemployment compensation, and workers’ compensation.
A) SOCIAL SECURITY—Social Security for employees is a concept which over time has gained importance in the industrialized countries. Broadly, it can be defined as measures providing protection to working class against contingencies like retirement, resignation, retrenchment, maternity, old age, unemployment, death, disablement and other similar conditions..
State Insurance Act, 1948
Although most employee benefits are provided at the employer’s discretion, others are required by law. Legally required benefits include Social Security, unemployment compensation, and workers’ compensation.
A) SOCIAL SECURITY—Social Security for employees is a concept which over time has gained importance in the industrialized countries. Broadly, it can be defined as measures providing protection to working class against contingencies like retirement, resignation, retrenchment, maternity, old age, unemployment, death, disablement and other similar conditions..
Facts [+]
The long-term viability of the social security system is facing serious issues. People are living longer, baby boomers are nearing retirement, and the birth rate is low. The result is the worker-to-beneficiary ratio has fallen from 17 to 1 in 1950 to 3 to 1, and within 40 years 2-to-1. At this rate there will not be enough workers to pay scheduled social security benefits at current tax rate
Social Security for employees in India
With reference to India, the Constitution levies responsibility on the State to provide social security to citizens of the country.
The State, here, discharges duty as an agent of the society in order to help those who are in adverse situations or otherwise needs protection owing to above mentioned contingencies. Article 41, 42 and 43 of the Constitution do talk about the same. Also, the Concurrent List of the Constitution of India mentions issues like-
With reference to India, the Constitution levies responsibility on the State to provide social security to citizens of the country.
The State, here, discharges duty as an agent of the society in order to help those who are in adverse situations or otherwise needs protection owing to above mentioned contingencies. Article 41, 42 and 43 of the Constitution do talk about the same. Also, the Concurrent List of the Constitution of India mentions issues like-
- Social Security and insurance, employment and unemployment.
- Welfare of Labour including conditions of work, provident funds, employers' liability, workmen's compensation,invalidity and old age pension and maternity benefits.
State Insurance Act, 1948
- provides for health care and cash benefits in cases of sickness, maternity and employment injury
- health and medical care facilities are provided to the workers through a network of 140 hospitals, 43 annexes and 1443 dispensaries located throughout the country
- Jointly administered by the Central Government and the State Governments
- while the Central Govt formulates the Scheme, recovers the contribution from employers of covered establishments with the help of its Recovery Officers, builds the infrastructure (hospitals, dispensaries etc.), provides 7/8th of the total expenses, the State Government contributes 1/8th, posts Medical Officers, specialists and paramedical staff, procures and instals equipments, dispenses medicines and has the overall responsibility for the management of the hospitals/dispensaries
- Director General (DG), ESIC is the Chief Executive Officer of the Corporation and functions under the overall Supervision and control of the Board and Committees/Councils formed thereunder More Detailed >>
Maternity Benefit Act, 1961
- Regulates employment of women before and after child birth and provides for 12 weeks maternity leave, medical bonus and certain other benefits
- the Act is not applicable to the employees covered under the ESI Act, 1948. >>
March - 2013: The Madras High Court held that the government employees opting for children through surrogacy would be entitled to maternity leave in the form of child care leave. Honourable High Court said that if law can provide childcare leave in case of adoptive parents, then it should also apply to parents who obtained child through surrogate agreement. The object of such a leave is to take care of the child and develop a good bond between the child and the parents.
- provides for payment of gratuity @ 15 days’ wages for every completed year of service or part thereof, in excess of seven months
- maximum amount of gratuity payable under the Act was raised from Rs. 1.00 lakh to Rs. 3.50 lakh with effect from 24.9.97
- no wage ceiling for coverage under the Act
Employees Provident Fund and Miscellaneous Provisions Act, 1952
In respect of establishments employing 20 or more persons and engaged in industry notified under Section 6 of Act. It is basically a social security provision and provides some financial stability post retirement to employees.The constitution of India provides that the state, within the limits of its economic capacity, must make effective provision for securing the right to work, education and to public assistance in cases of unemployment, old age, sickness and disablement.
It is these directive principles which led to the creation of the Provident Fund Act. The contribution limits are 12 per cent of basic salary plus dearness allowance, subject to a maximum limit of Rs 6,500 (Rs 780). If the employee’s emoluments exceed Rs. 6,500/- per month, he has the option to join the Scheme(s) with the consent of employer.
This is true for both employers and employees, though employees may contribute a higher amount voluntarily.
Though PF contributions are the internal activity of the Indian supplier company, many European and American customers treat internal statutory compliance as part of the vendor's assessment.
A blacklist on any item, therefore, means that the vendor becomes ineligible for the contract. While dealing with international vendors, this is perhaps one method adopted by clients from almost all developed nations to make sure that they don't unknowingly become a party to unhealthy business practices.
Pension benefit after retirement/superannuation (A superannuation pension shall be granted to a Government servant who is retired on his attaining the age of 60 years. )
The minimum eligibility period for receipt of pension is 10 years. A Central Government servant retiring in accordance with the Pension Rules is entitled to receive superannuation pension on completion of at least 10 years of qualifying service.
In the case of Family Pension the widow is eligible to receive pension on death of her spouse after completion of one year of continuous service or before even completion of one year if the Government servant had been examined by the appropriate Medical Authority and declared fit for Government service.
W.e.f 1.1.2006, Pension is calculated with reference to average emoluments namely, the average of the basic pay drawn during the last 10 months of the service or last basic pay drawn whichever is beneficial. Full pension with 10/20 years of qualifying service is 50% of the average emoluments or last basic pay drawn whichever is beneficial. Before 1.1.2006, for qualifying service of less than 33 years, amount of pension was proportionate to the actual qualifying service broken into completed half-year periods. For example, if total qualifying service is 30 years and 4 months (i.e. 61 half-year periods), pension will be calculated as under:-
where R represents average reckonable emoluments for last 10 months of qualifying service or the last pay drawn as opted by the govt servant.
Minimum pension presently is Rs. 3500 per month. Maximum limit on pension is 50% of the highest pay in the Government of India (presently Rs. 45,000) per month. Pension is payable up to and including the date of death.
Commutation of Pension
A Central Government servant has an option to commute a portion of pension, not exceeding 40% of it, into a lump sum payment with effect from 1.1.1996. No medical examination is required if the option is exercised within one year of retirement. If the option is exercised after expiry of one year, he/she will have to under go medical examination by the specified competent authority.
Facts [+]
In India, states like Andhra Pradesh government had removed the pension scheme for government employees those who had joined after 2004, November with the motive to cut down the state expenditure and retain revenues. Eventually lead to initiation of pension schemes by the different bankers and insurance companies like MetLife India Insurance Co. Pvt. Ltd., an Indian affiliate of the U.S.-based Metropolitan Life Insurance Company. some of pension scheme by different companies are Met Pension –Par , LIC Pension Plus, ICICI Pru Life Link Pension SP, SBI Life – LifeLong Pension,Bajaj Allianz Pension Guaranteed, HDFC Personal Pension Plan,TATA AIG Life Nirvana, Birla Sun Life Immediate Income Plan, Reliance Life Traditional Golden Year Plan. etc.
In fact private and public own companies are providing better incentives and benefits to their talented employees especially in the IT and Automobile sector to protect the morale of employees and retain them in organization for long period.
Facts [+]
In respect of establishments employing 20 or more persons and engaged in industry notified under Section 6 of Act. It is basically a social security provision and provides some financial stability post retirement to employees.The constitution of India provides that the state, within the limits of its economic capacity, must make effective provision for securing the right to work, education and to public assistance in cases of unemployment, old age, sickness and disablement.
It is these directive principles which led to the creation of the Provident Fund Act. The contribution limits are 12 per cent of basic salary plus dearness allowance, subject to a maximum limit of Rs 6,500 (Rs 780). If the employee’s emoluments exceed Rs. 6,500/- per month, he has the option to join the Scheme(s) with the consent of employer.
This is true for both employers and employees, though employees may contribute a higher amount voluntarily.
Though PF contributions are the internal activity of the Indian supplier company, many European and American customers treat internal statutory compliance as part of the vendor's assessment.
A blacklist on any item, therefore, means that the vendor becomes ineligible for the contract. While dealing with international vendors, this is perhaps one method adopted by clients from almost all developed nations to make sure that they don't unknowingly become a party to unhealthy business practices.
Pension benefit after retirement/superannuation (A superannuation pension shall be granted to a Government servant who is retired on his attaining the age of 60 years. )
The minimum eligibility period for receipt of pension is 10 years. A Central Government servant retiring in accordance with the Pension Rules is entitled to receive superannuation pension on completion of at least 10 years of qualifying service.
In the case of Family Pension the widow is eligible to receive pension on death of her spouse after completion of one year of continuous service or before even completion of one year if the Government servant had been examined by the appropriate Medical Authority and declared fit for Government service.
W.e.f 1.1.2006, Pension is calculated with reference to average emoluments namely, the average of the basic pay drawn during the last 10 months of the service or last basic pay drawn whichever is beneficial. Full pension with 10/20 years of qualifying service is 50% of the average emoluments or last basic pay drawn whichever is beneficial. Before 1.1.2006, for qualifying service of less than 33 years, amount of pension was proportionate to the actual qualifying service broken into completed half-year periods. For example, if total qualifying service is 30 years and 4 months (i.e. 61 half-year periods), pension will be calculated as under:-
Pension amount = R/2(X)61/66
where R represents average reckonable emoluments for last 10 months of qualifying service or the last pay drawn as opted by the govt servant.
Minimum pension presently is Rs. 3500 per month. Maximum limit on pension is 50% of the highest pay in the Government of India (presently Rs. 45,000) per month. Pension is payable up to and including the date of death.
Commutation of Pension
A Central Government servant has an option to commute a portion of pension, not exceeding 40% of it, into a lump sum payment with effect from 1.1.1996. No medical examination is required if the option is exercised within one year of retirement. If the option is exercised after expiry of one year, he/she will have to under go medical examination by the specified competent authority.
Facts [+]
In India, states like Andhra Pradesh government had removed the pension scheme for government employees those who had joined after 2004, November with the motive to cut down the state expenditure and retain revenues. Eventually lead to initiation of pension schemes by the different bankers and insurance companies like MetLife India Insurance Co. Pvt. Ltd., an Indian affiliate of the U.S.-based Metropolitan Life Insurance Company. some of pension scheme by different companies are Met Pension –Par , LIC Pension Plus, ICICI Pru Life Link Pension SP, SBI Life – LifeLong Pension,Bajaj Allianz Pension Guaranteed, HDFC Personal Pension Plan,TATA AIG Life Nirvana, Birla Sun Life Immediate Income Plan, Reliance Life Traditional Golden Year Plan. etc.
In fact private and public own companies are providing better incentives and benefits to their talented employees especially in the IT and Automobile sector to protect the morale of employees and retain them in organization for long period.
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To go into the background of Provident Fund, it is basically a social security provision and provides some financial stability post retirement to employees. It isn't an idea specific to India, and may generally be found across the globe. The United States imposes Social Security and Medicare contributions towards old age, disability, pension and medical benefits. As early as the 1880s, Germany had built a social insurance programme (one requiring contributions from workers) that provided for sickness, maternity, and old-age benefits. Volatility of income especially hurt the older workers, as they often bore the brunt of economic downturns.
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India Present Prime Minister Manmohan Singh said at the 44th Indian Labour Conference, Women employed in part-time jobs may soon have a legislation to guarantee them benefits of regular jobs and also to bring more women in the work force, the government needs to make provision for part time work which would have the same characteristics of full- time employment.
The Health Insurance Portability and Accountability Act was enacted by U.S. Congress in 1996. HIPAA specifies national standards to protect individuals' medical records and other personal health information. HIPAA also regulates the security of health information, national standards for electronic healthcare transactions, and national identifiers for providers, health plans and employers.
The Health Insurance Portability and Accountability Act was enacted by U.S. Congress in 1996. HIPAA specifies national standards to protect individuals' medical records and other personal health information. HIPAA also regulates the security of health information, national standards for electronic healthcare transactions, and national identifiers for providers, health plans and employers.
B) SABBATICAL BENEFIT: [Sabbatical :any extended period of leave from one's customary work, especially for rest, to acquire new skills or training, etc.]
Coming soon: Up to 2 years' sabbatical for women bank staff
New Delhi, March 2012 : Come April, and women employees of public sector banks (PSBs) may be able to get sabbatical of up to two years during their career.
The Finance Ministry has asked PSBs to place this proposal before their respective boards for decision and its introduction with effect from April 1,2012, official sources said.
This follows the Government agreeing to the Khandelwal Committee's recommendation to introduce sabbatical for women employees of PSBs. The sabbatical benefit will be available only to employees who have put in a minimum of five years of service. The leave will have to be taken for a period of at least three months at a time and it should not be taken more than once in a year.
But, the Government's decision has somewhat irked trade unions, as they contend that such a move would be unilateral and in violation of the service conditions provided in the bilateral settlement between the Indian Banks' Association (IBA) and the unions.
The Khandelwal Committee was set up in October 2009 to study human resource issues in public sector banks. The Committee had made 105 recommendations, of which the Centre has given its green signal for 56.
401(k) plan (Retirement Benefit)
Employer-sponsored employee benefit scheme supported by the US tax code. Under this plan, a limited amount of an employee's before-tax salary is deposited into tax-deferred retirement plan where it accumulate free of tax. Withdrawals by the employee before he or she reaches the age of 59½ years attract penalties except in certain cases of hardship.
The long-term viability of the social security system is facing serious issues. People are living longer, baby boomers are nearing retirement, and the birth rate is low. The result is the worker-to-beneficiary ratio has fallen from 17 to 1 in 1950 to 3 to 1, and within 40 years 2-to-1. At this rate there will not be enough workers to pay scheduled social security benefits at current tax rates.
A survey of recent retirees conducted by Putnam Investments found over 78 percent regretted not saving more during their work years. Fifty-nine percent felt they should have started saving for retirement earlier in their careers. More than a third wished their employer or plan manager had encouraged them to save more aggressively.
Facts [+]
Feb 2012, WASHINGTON: The US House of Representatives passed a compromise bill on Friday extending a payroll tax cut and jobless benefits through 2012, measures aimed at boosting the US economy.The bill passed by a vote of 293 to 132 and nine abstentions, with broad support from Democrats and Republicans, after a bipartisan deal was reached to end a long and bitter fight over a key proposal by President Barack Obama. The cost of the package has been estimated at $150 billion.
The plan is expected to extend a cut in the Social Security tax rate -- from 6.2 to 4.2 per cent -- for another 10 months, and extend unemployment benefits through the end of the year. It will mean a salaried worker making $50,000 a year will be getting about $1,000 more in take-home pay over the course of the year.
Britain is facing a youth unemployment crisis with more than one in five 16 to 24 year olds currently without a job. The hospitality industry is a key employer of young people and around a quarter of InterContinental's 15,000 British employees are aged between 18 to 24.
Feb 2012, WASHINGTON: The US House of Representatives passed a compromise bill on Friday extending a payroll tax cut and jobless benefits through 2012, measures aimed at boosting the US economy.The bill passed by a vote of 293 to 132 and nine abstentions, with broad support from Democrats and Republicans, after a bipartisan deal was reached to end a long and bitter fight over a key proposal by President Barack Obama. The cost of the package has been estimated at $150 billion.
The plan is expected to extend a cut in the Social Security tax rate -- from 6.2 to 4.2 per cent -- for another 10 months, and extend unemployment benefits through the end of the year. It will mean a salaried worker making $50,000 a year will be getting about $1,000 more in take-home pay over the course of the year.
Britain is facing a youth unemployment crisis with more than one in five 16 to 24 year olds currently without a job. The hospitality industry is a key employer of young people and around a quarter of InterContinental's 15,000 British employees are aged between 18 to 24.
D) WORKER'S COMPENSATION—Until the early part of the 20th century, workers had little recourse in the event that they were to become the victim of a workplace accident. But the new processes and machines that were incorporated into many jobs with the spread of industrialization created a sufficient increase in the level of occupational danger to warrant the attention of legislators. In response to the growing problem, laws were enacted to grant workers access to financial benefits that their employers would be obligated to provide, free of any considerations about liability. In some ways, it was a tremendous victory, and in others it was less so.Workers’ compensation benefits provide a degree of financial protection for employees who incur expenses resulting from job-related accidents or illnesses.
E) PAID VACATION
Employees who work all day, every day, without a break in sight, will generally be less productive on the job. Offering paid vacation as part of your benefits package will create a more positive work environment and will help your employees avoid burnout. According to Salary.com, there are several ways in which paid vacation can be structured.
For example, some employers offering basic employee benefits allow employees to "earn" paid vacation through years of service. It is also important to determine whether or not your employees will be allowed to carry over unused paid vacation days when a new year begins.
Facts [+]
Italy, France, and Germany top the list of average number of vacation days per year, according to the World Tourism Organization. Italians receive an average of forty-two vacation days per year. Korea, Japan, and the U.S. are at the bottom of the list. Americans receive an average of thirteen vacation days per year.
statutory holiday entitlements:
There is no federal law that requires employers to provide vacation time, paid or unpaid, to its employers. Most employees consider it to be one of their most important benefits. Workplace experts agree that it is important to productivity and morale for employees to take time off in order to rest and rejuvenate. The typical U.S. worker receives ten vacation days per year.
It takes twenty-five years of service in the United States to achieve the mandated minimum vacation allotments in other comparable countries, according to an Economic Policy Institute study. France, Austria, and Denmark mandate at least 25 vacation days per year to employees. There is no mandated vacation time in the United States.
American workers receive on average about twelve vacation days a year. The typical American worker gives back an average of three vacation days, according to a recent survey by Expedia.com, leaving nearly 421 million vacation days unused. The survey estimates that 31 percent of employees do not take all their vacation days.
Every legal worker in the U.S. is entitled by federal law to three basic benefits. Workers' compensation provides insurance for work-related injuries or death. Social security provides retirement income and disability coverage for workers and their dependents. Unemployment insurance provides payments for a period of time presumably long enough to allow workers to find new jobs.
Italy, France, and Germany top the list of average number of vacation days per year, according to the World Tourism Organization. Italians receive an average of forty-two vacation days per year. Korea, Japan, and the U.S. are at the bottom of the list. Americans receive an average of thirteen vacation days per year.
statutory holiday entitlements:
- U.K. (28 days)
- Poland (26 days)
- Greece, Austria, France, Sweden, Luxemburg, Finland and Denmark (25 days)
- Venezuela (24 days)
- Brazil, Peru, Spain, Portugal, United Arab Emirates (22 days)
- Norway (21 days)
- Argentina, Italy, Belgium, Germany, Cyprus, Ireland, Switzerland, the Netherlands, Latvia, Russia, Slovenia, Serbia, Slovakia, Lithuania, Croatia, the Czech Republic, Romania, Japan, Australia and New Zealand (20 days)
- South Korea (19 days)
There is no federal law that requires employers to provide vacation time, paid or unpaid, to its employers. Most employees consider it to be one of their most important benefits. Workplace experts agree that it is important to productivity and morale for employees to take time off in order to rest and rejuvenate. The typical U.S. worker receives ten vacation days per year.
It takes twenty-five years of service in the United States to achieve the mandated minimum vacation allotments in other comparable countries, according to an Economic Policy Institute study. France, Austria, and Denmark mandate at least 25 vacation days per year to employees. There is no mandated vacation time in the United States.
American workers receive on average about twelve vacation days a year. The typical American worker gives back an average of three vacation days, according to a recent survey by Expedia.com, leaving nearly 421 million vacation days unused. The survey estimates that 31 percent of employees do not take all their vacation days.
Every legal worker in the U.S. is entitled by federal law to three basic benefits. Workers' compensation provides insurance for work-related injuries or death. Social security provides retirement income and disability coverage for workers and their dependents. Unemployment insurance provides payments for a period of time presumably long enough to allow workers to find new jobs.
Many U.S. employers recognize 10 federal holidays, if not more.
Organizations commonly provide nine or ten days per year as public holidays, although there is no standard. Federal holidays, or legal public holidays, are recognized by Congress but are not observed by all employers.
Legal public holidays:
- New Year's Day, January 1
- Martin Luther King, Jr. Day, the third Monday in January
- Washington's Birthday, the third Monday in February
- Memorial Day, the last Monday in May
- Independence Day, July 4
- Labor Day, the first Monday in September
- Columbus Day, the second Monday in October
- Veterans Day, November 11
- Thanksgiving Day, the fourth Thursday in November
- Christmas Day, December 25
India
It consists of holidays which have to be observed compulsorily across India.These holidays are:
- Republic Day,
- Independence Day,
- Mahatma Gandhi's Birthday,
- Budha Purnima
- Christmas Day
- Dussehra (Vijay Dashmi) An additional day for Dussehra
- Holi
- Janamashtami (Vaishanvi)
- Ram Navami
- Maha Shivratri
- Ganesh Chaturthi / Vinayak Chaturthi
- Makar Sankrantili
- Rath Yatra
- Onam
- Sri Panchami / Basanta Panchami
- Vishu / Vaisakhi / Vaisakhadi / Bhag Bihu / Mashadi Ugadi / Chaitra Sakladi / Cheti Chand / Gudi Pada 1st Navratra / Nauraj
- Diwali (Deepavali)
- Good Friday
- Guru Nanak's Birthday
- Eid ul-Fitr
- Eid al-Adha (Bakrid)
- Muharram
- Prophet Mohammad's Birthday (Id-e-Milad)
- Dussehra (Maha Navami)
- Dussehra (Vijay Dashami)
- Deepawali
- Eid al-Adha (Bakrid)
- Guru Nanak's birthday/Kartik Poornima
- Dr. B R. Ambedkar's Nirwan Diwas
- Moharram
- Christmas
E) NIGHT-SHIFT ALLOWANCE
According to the labour law, mandates the employer to pay double wage to the worker who works beyond the prescribed working hours or for extra working hours. In addition to the payment of double wage for extra working hours, Night-shift allowance is paid to the workers who does job at night-shift or who does job beyond the prescribed day working hours. Under this allowance, employee will pay some amount for the purpose of transportation/commuting from his residence to workplace.
In fact, especially in the software companies, many employees who are working at night-shifts are complaining about non-payment of night-shift allowance, but it has mentioned as paid in their salary payslip.
Severance Pay
severance pay is the compensation or benefit paid in the form of money by employer at the time of resignation on mutual agreement, retirement, laid off or employee leaving the company on any reason expect on dismissal by misconduct.Typically, severance pay amounts to a week or two of pay for every year that the employee was with the company. Executives may receive a month's pay for each year of service and senior executives generally receive severance pay as outlined in the employment contract. In addition to pay, severance packages can include extended benefits, such as health insurance and outplacement assistance to help the employee secure a new position.
Severance pay amounts may have peaked in 1999 when employers were giving laid off workers an average of twenty-four weeks of pay, according to a study by finance publisher Kiplinger. The study observed that the decline was a result of employees changing jobs more frequently than in previous years, since severance pay is based on the length of employment.
The Severance package may include the following:
A severance package's worth varies from company to company, as well as from employee to employee. Employers may consider the following circumstances when determining how much severance to offer:
Eligibility for Severance Pay
To be eligible for severance pay, an employee must be serving under a qualifying appointment, have a regularly scheduled tour of duty, have completed at least 12 months of continuous service, and be removed from Federal service by involuntary separation for reasons other than inefficiency (i.e., unacceptable performance or conduct).
Computation of Severance Pay Fund
An employee's severance pay fund may consist of two parts-the basic severance pay allowance and an age adjustment allowance, if applicable.
Basic severance pay allowance
The basic severance pay allowance consists of-
One week of pay at the rate of basic pay for the position held by the employee at the time of separation for each full year of creditable service through 10 years;
Two weeks of pay at the rate of basic pay for the position held by the employee at the time of separation for each full year of creditable service beyond 10 years; and
Twenty-five percent of the otherwise applicable amount for each full 3 months of creditable service beyond the final full year.
Age Adjustment Allowance
The basic severance pay allowance is augmented by an age adjustment allowance consisting of 2.5 percent of the basic severance pay allowance for each full 3 months of age over 40 years.
Thus, any severance pay you may have received in the past is taken into account when applying the limit. Severance payments will be equal to your weekly pay at the time of separation and will be paid out at regular pay period intervals (usually biweekly) until the severance pay is exhausted. The only deductions made from severance pay are taxes, social security (if applicable), and Medicare.
Employers are not legally required to give severance pay to fired employees. However, they may do so only under two circumstances:
Severance pay amounts may have peaked in 1999 when employers were giving laid off workers an average of twenty-four weeks of pay, according to a study by finance publisher Kiplinger. The study observed that the decline was a result of employees changing jobs more frequently than in previous years, since severance pay is based on the length of employment.
The Severance package may include the following:
- The employees remaining regular pay
- An additional payment based on months of service
- Payment for unused vacation or sick leave
- A payment in lieu of a required notice period
- Medical, dental or life insurance - Some employers offer a continuation of insurance benefits but they would not foot the paying of the bills
- Retirement benefits
- Stock optionsUnemployment benefits - Fired employees can claim unemployment benefits if they were fired for reasons other than serious misconduct.
A severance package's worth varies from company to company, as well as from employee to employee. Employers may consider the following circumstances when determining how much severance to offer:
- Pay level/salary received prior to termination
- Duration of employment
- Position at company
- Performance
- And other pertinent factors
Facts [+]
May 2012 Google Inc acquired (buyout) Motorola Mobility for $12.5 billion, following this in August 2012 Google Inc cut 4000 jobs in the United States due to drop in its profits due to drop in sales and announced severance package costs about $275 million for the retrenched employees . Google stated that his decision was taken to minimise its costs and make business profitable in future.
May 2012 Google Inc acquired (buyout) Motorola Mobility for $12.5 billion, following this in August 2012 Google Inc cut 4000 jobs in the United States due to drop in its profits due to drop in sales and announced severance package costs about $275 million for the retrenched employees . Google stated that his decision was taken to minimise its costs and make business profitable in future.
Eligibility for Severance Pay
To be eligible for severance pay, an employee must be serving under a qualifying appointment, have a regularly scheduled tour of duty, have completed at least 12 months of continuous service, and be removed from Federal service by involuntary separation for reasons other than inefficiency (i.e., unacceptable performance or conduct).
Computation of Severance Pay Fund
An employee's severance pay fund may consist of two parts-the basic severance pay allowance and an age adjustment allowance, if applicable.
Basic severance pay allowance
The basic severance pay allowance consists of-
One week of pay at the rate of basic pay for the position held by the employee at the time of separation for each full year of creditable service through 10 years;
Two weeks of pay at the rate of basic pay for the position held by the employee at the time of separation for each full year of creditable service beyond 10 years; and
Twenty-five percent of the otherwise applicable amount for each full 3 months of creditable service beyond the final full year.
Age Adjustment Allowance
The basic severance pay allowance is augmented by an age adjustment allowance consisting of 2.5 percent of the basic severance pay allowance for each full 3 months of age over 40 years.
Thus, any severance pay you may have received in the past is taken into account when applying the limit. Severance payments will be equal to your weekly pay at the time of separation and will be paid out at regular pay period intervals (usually biweekly) until the severance pay is exhausted. The only deductions made from severance pay are taxes, social security (if applicable), and Medicare.
Facts [+]
Potential new-hires are increasingly negotiating severance packages and outplacement assistance as a condition for accepting job offers, according to a USA Today article. Executives are likely to negotiate these employment terms but the practice is spreading down through the ranks. Career experts agree that this form of negotiation was once considered bad form but is now generally accepted.
Potential new-hires are increasingly negotiating severance packages and outplacement assistance as a condition for accepting job offers, according to a USA Today article. Executives are likely to negotiate these employment terms but the practice is spreading down through the ranks. Career experts agree that this form of negotiation was once considered bad form but is now generally accepted.
"There is no law which compel to pay severance pay"
Employers are not legally required to give severance pay to fired employees. However, they may do so only under two circumstances:
o Some states require employers to give a small severance pay when they close down a facility or laying off a large number of employees
o An employer is legally required to give severance pay if workers are led to believe they would be paid when they leave employment. This is evidenced by:
o An employer is legally required to give severance pay if workers are led to believe they would be paid when they leave employment. This is evidenced by:
- A written contract stating the severance would be paid
- A promise that employees will receive severance pay
- A history of the company giving severance pay to other employees in the same position
- An oral promise to the employees that severance will be paid
Some employers routinely give severance packages to long-serving employees who were fired for reasons other than serious misconduct, as a way of softening the blows of being laid-off.
Not in the name of severance pay, unlike United States and other countries, There are certain labour laws in India compel for payment of certain an amount for retrenched or terminated employee from the employment by his employer.
Employers with formal severance policies spend less on severance packages than those that do not, according to a study by Right Management Consultants Inc. Companies with informal policies tend to incur higher administrative and severance costs associated with the packages due to policy decisions that are made on a case-by-case basis, often resulting in more generous packages.
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