What are the employee benefits and services? Employee benefits? what is services? What is PF, Gratuity? Why employer will provide benefits to its employee

1. - By Group 7

2. What is a Employee Benefits
and services?
Purpose of Employee
Benefits.
Coverage of Employee
Benefits.
Payments for Benefits and
Services.

3. What is a Employee benefits and services?
Meaning : “ A Benefit is a from of indirect compensation and apart of the
total compensation package offered to employees.”
“Employee benefits are all forms of consideration given by an enterprise in
exchange for service rendered by employees.”
“ A service is a facility provided by the employer to the employee in addition to
the salary”
Fringe Benefits:
According to the Employer’s Federation of India, “fringe benefits include
payments for non working time, profits and bonus, legally sanctioned payments on
social security schemes, workmen’s compensation, welfare cess, and the
contribution made by the employer’s under such voluntary schemes as cater for
the post-retirement, medical, educational, cultural and recreational needs of
workmen. The term also includes the monetary equivalent of free lightning water,
fuel, etc, which are provided for workers and subsided housing and related
services.”

4. Purpose for Benefits and Services
Employers must offer competitive benefit package to compete
in the labour markets as it improves public image of organization.
Employee demand: To meet rising prices and increased cost of
living employees demand various types of benefits Example :
Variable dearness allowance, Enhanced HRA.
Trade union demand various benefits and services like bonus,
holidays, incentives, overtime, etc. As required by the workmen
from company.
Employers prefer to give benefits to employees as it enhances
employee’s morale works as an effective motivational tool
provided it is with in the accepted norms and limits.

5. Coverage of Benefits and services
Hours of work
1. Section 51 of the Factories Act, 1948 specifies that no adult worker shall be
required to work in the factory for more than 48 hrs in any week.
2. Section 54 of the Act restricts the working hours to 9 hrs a day.
1. According to the Factories Act, 1948 and adult worker shall have weekly
paid holidays, preferably Sunday.
2. When a worker is deprived of holidays , he is eligible for compensatory
holidays of the same number in the same month.
Paid Holidays

6. Coverage of Benefits and services
 Shift Premium
Companies operating various shift like first and third shift pay a premium to the
workers who are required to work in odd hour shifts.
Companies offer double the normal rate of the salary to those workers
who work during holidays or overtime.
 Holiday pay / overtime
 Paid Vacation
Workers who worked for 240 days during a calendar year are eligible for
paid vacation at the rate of one day for every 20 days worked in case of
adult workers.

7. Benefits and Services
Payments for ensuring security to employees.
Payments for ensuring employees safety and health
Payments for ensuring welfare and recreational benefits
Payments for ensuring old age an retirement benefits

8. Payments for ensuring security to employees
Retrenchments compensation
Lay-off compensation

9. Payments for ensuring employees safety and
health
Dependent's Benefit
Sickness Benefit Maternity Benefit
Disablement Benefits
Medical Benefits

10. Payments for ensuring welfare and recreational
benefits :-
Canteens
Consumer stores
Credit Societies
Housing
Legal
Financial Aid
Employee Counselling
Holiday Homes
Educational Facilities
Transportation
Parties and Picnics
Welfare organisations, welfare officers
Miscellaneous: Clubs, sports, birthday gifts, diwali bonus, performance awards

11. Payments for ensuring old age an retirement benefits
Deposit Linked Insurance
Provident Fund Pension
Gratuity

12. 1. https://www.startuphrtoolkit.com/employee-benefits-in-hrm/
2. https://www.yourarticlelibrary.com/employee-
management/employee-benefits-meaning-benefits-objective-and-
other-details/60366
3. https://businessjargons.com/employee-benefits.html
4. https://knowledge.leglobal.org/social-security-in-india/
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