Statutory or mandatory employee benefits - list of statutory employee benefits compulsory be given to employee



Statutory or mandatory employee benefits

Although most employee benefits are provided at the employer’s discretion, others are required by law and mandatory. Statutory  benefits include Social Security, unemployment compensation, and workers’ compensation.


1. Earned leave:


Earned leave is mandatory for employees working in government sector but this leave is not mandatory and it is a voluntary benefit given to employees working in private and corporate sector. Irrespective  of casual leaves, medical leaves and optional holidays, earned leaves can be availed by the employees
for personal works. Unlike casual leaves some organisations may not grant single earned leave. If an employee wants to avail this sort of leave he/she needs to request for three or more in one stretch. in order to avail Leave under this benefit, he/she must inform controlling/superior officer in advance but in case of casual leave giving information in advance may not be necessary.

Why  is it earned leave?
Unlike casual leaves, medical leaves and optional holidays, an employee can encash the unused earned leaves how many he/she has not availed or unutilized during the calendar year that is from 1st January to 31st December. But encashment  of earned leaves is allowed only at the time of retirement of an employee or separation of employee other than suspension or dismissal from  organization. Besides, few organizations  allow to encash maximum of 300 earned leaves from  total earned leaves accumulated at the time of retirement or separation of an employee, but not all unused earned leaves are allowed to encash.

INDIA

Employee can exceed earned leave limit: High Court Lays down law for calculating accumulated unutilised leave

Saurabh Malik
Tribune News Service
Chandigarh, October 15-2016

In a significant judgment, the Punjab and Haryana High Court has ruled that the accumulated unutilised leave of an employee cannot be reduced to 300 days even if he is entitled to leave encashment for a maximum of 300 days.

The ruling came in case of Haryana Government employees after the High Court was told that accumulated earned leave was reduced to 300 days time and again during the course of service on the assumption that they were entitled to a maximum of 300 days earned leave.

Eventually, when the time came for encashment of unutilised earned leave, they were granted the benefit for lesser number of days.

“If an employee is entitled to leave encashment for a maximum limit of 300 days, that does not mean that the accumulated unutilised leave is to be reduced to 300 days if it exceeds the limit. The earned leave will continue to accumulate till the retirement of the petitioners and the petitioners are to be granted the maximum benefit of 300 days, as stated in the rules,” Justice Kuldip Singh ruled.

The ruling came on a petition by Jaipal Phogat and another petitioner against the State of Haryana and other respondents. Justice Kuldip Singh asserted the “unfortunate controversy” was regarding the method used to calculate unutilised earned leave of petitioners Jaipal Phogat and Jaibhagwan.

Retired mechanics, the petitioners had claimed that they were entitled to leave encashment of 300 days unutilised earned leave. Petitioner number one was is entitled to 300 days leave encashment, but was granted the benefit of 257 days. Petitioner number two, on the other hand, was entitled to 268 days leave encashment, but was granted the benefit of 211 days.

During the course of the hearing, Justice Kuldip Singh asked both parties to file calculation sheets. He added that the examination of calculation sheet regarding Phogat showed mischief was done while calculating unutilised earned leave on April 27, 1999, May 22, 2003, and October 31, 2007.
The unutilised earned leave for 362 days, 375 days and 335 days, respectively, was reduced to 300 days on the assumption that the petitioner was entitled to a maximum of 300 days earned leave.

Similarly, in Jaibhagwan’s case, earned leave was reduced on August 11, 2002, May 22, 2003, and August 22, 2003, from 308 days, 307 days and 305 days, respectively.

“The calculation done by the respondents is not only mischievous, but wrong application of the principle of calculation of unutilised earned leave is also there. As such, the calculations made by the petitioners are accepted and that of the respondents are set aside,” the High Court ruled.


2. SOCIAL SECURITY BENEFITS—

The word ‘Social’ is adjectival form of society, i.e. anything relating to the society. The word ‘Security’ is the measure of safety or protection from the danger or loss. Thus the phrase ‘Social Security’ refers to the measures of safety provided by the society to the needy for their protection and releasing them ‘free from want’.

The concept of such security is not new and some references of such measure are to be found in the ancient and medieval history where certain social or religious groups have endeavored to provide for similar security systems for the under-privileged or downtrodden people leaving in the same society. Therefore the realisation of a sense of moral, pious and religious responsibility of the society towards the weak sections of people is not unknown. However with the passage of time and the growing sense of civil and ethical responsibility of a civilised society, the Governmental and Non-Governmental efforts for the protection of the needy and to make them free from want also received social recognition.

In the field of industrial relations the phrase Social Security refers to those measures which are provided under the Labour Laws for the safety and protection of the employees from the most common hazards of their occupational life.

The establishment of International Labour Organisation (ILO) ever since its inception in the year 1919 helped evolution of social Security legislation in the field of industrial relations. Various ILO Conventions dealing with Social Security of Women, Children, and employees in almost all types of industries are found enacted by various member-countries in their Social Security legislations. The concept of Social Security is getting enlarged to include in its gamut the human rights also.

Types of Social Security
As mentioned earlier, that the task of providing social security to the needy is taken up both by governmental and non-governmental agencies and social organisations. Their efforts can be classified into two branches on the basis of the financial commitment and the contribution by the employees themselves towards such Social Security measure. Thus the two classifications of Social Security can be described as under:-

Thus Social Security concept is divided into two branches, namely, Social Assistance and Social Insurance.

Difference between Social Assistance and Social Insurance

Briefly speaking, the difference between Social Assistance and Social Insurance as the two types of Social Security can be summarised as under:-
  1. In case of Social Assistance, there is no contribution made by the employees and the financial burden is shared by the employer. Government or social organisations. Whereas in case of Social Insurance, the workman himself is also contributing his share in the financial responsibility.
  2. In case of Social Assistance, it is gratuitously provided to the workman by the society, i.e. Government, employer or social organisation and therefore it cannot be claimed as a matter of right. Whereas in case of Social Insurance, it is a right of the workman to receive the social protection as he is also contributing towards the financial fund of such Schemes.
  3. In case of Social Assistance the benefit cannot always be claimed through Court’s intervention unless such scheme is provided as a statutory duty. Whereas in case of Social Insurance, it is a legal right of the workman also to claim it through the Court of Law.

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 benefits, paternity leave, old age, unemployment, death, disablement and other similar conditions.

Following are some legal social security benefits for employees
  1. Employees Welfare Fund.
  2. Provision for Group Insurance Policies.
  3. Provision for Provident Fund.
  4. Provision for Pension.
  5. Provision for medical and educational facilities for the clerks and their families/dependents.
  6. Financial assistance to needy clerks.
  7. Provision of payment of consolidated sum on death/disablement of any clerk.
  8. Provisions for common rooms with books and newspaper akin to Bar Room for Advocates.
  9. Provisions for periodical training programmes and symposiums to upgrade their skills and to train them.

Social Security for employees in India

Social Assistance is that measure of social action in which relief or protection is given by way of “assistance without taking any contribution from the workman” and such social assistance is to be found in the Governmental Scheme for various welfare measures for medical, financial or legal assistance gratuitously viz, Old-age pension, unemployment benefit, or various schemes for free medical treatment to the poor worker. Whereas in the case of ‘Social Insurance’, the scheme is prepared where in the concerned workman also pays his contribution to such schemes and get benefit in case of any calamity, disease or accidents. The good examples of these two types of Social Security can be found in the ‘Employee’s Compensation Act, 1923’ which is a non-contributory assistance given to the affected employees and the financial responsibility is shared by the employer. Whereas the Employees’ State Insurance Act, 1948 (ESI) is the measure of Social Security wherein the employees also contribute their share. The Employees Provident Fund and Miscellaneous Provisions Act, 1952 is also a Scheme in which financial responsibility is shared between employers, employees and the Government.

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.

Below mentioned are the important employment laws  on the Social Security benefits within India meant for the employees working in various industries and it is compulsory for employer to provide Social Security benefits to his employees according to this acts. If any contrivance with laws mentioned below by the employer shall be made liable for punishment by the Legislature.


a) Employee benefits through State Insurance Act, 1948

APPLICABILITY
Under Section 2(12) the Act is applicable to non-seasonal factories employing 10 or more persons.

Note: However the threshold for Coverage of establishments is still 20 Employees in Maharashtra and Chandigarh. The existing wage limit for coverage under the Act is Rs.21,000/- per month (w.e.f. 01/01/2017).

Contribution
Currently, the contribution rate is 1% of wages of Employee and 3% payable by Employers for first 24 months(w.e.f. 6.10.2016) Employees in receipt of a daily average wage upto Rs.137/- are exempted from payment of contribution. Employers will however contribute their own share in respect of these employees.
    • Sickness benefit: ESIC provides 70% of average daily wages in cash during medical leave, upto 91 days in two consecutive benefit periods.
    • Medical benefit: ESIC provides reasonable Medical Care for self and family from day one of entering into insurable employment.
    • Disablement benefit: ESIC provides continuous monthly payment till injury lasts for temporary disablement and for whole life for permanent  disablement.
Temporary disablement benefit (TDB) : From day one of entering insurable employment & irrespective of having paid any contribution in case of employment injury. Temporary Disablement Benefit at the rate of 90% of wage is payable so long as disability continues.

Permanent disablement benefit (PDB) : The benefit is paid at the rate of 90% of wage in the form of monthly payment depending upon the extent of loss of earning capacity as certified by a Medical Board

Dependants Benefit (DB) : DB paid at the rate of 90% of wage in the form of monthly payment to the dependants of a deceased Insured person in cases where death occurs due to employment injury or occupational hazards.
    • Maternity benefit: ESIC provides 100% of average daily wages in cash up to 26 weeks in confinement and 6 week in case of miscarriage, during maternity leave and 12 weeks for commissioning mother and adopting mother.
    • Unemployment allowance: ESIC Provides monthly cash allowance for a duration of maximum 24 months in case of involuntary loss of employment or permanent invalidity due to non-employment injury.
    • Funeral Expenses : An amount of Rs.10,000/- is payable to the dependents or to the person who performs last rites from day one of entering insurable employment.


b)Maternity Benefit

Under the Maternity Benefit Act, 1961, women employees are entitled to maternity benefit at the rate of average daily wage for the period of their actual absence up to 12 weeks due to the delivery. In cases of illness arising due to pregnancy, etc., they are entitled to additional leave with wages for a period of one month. They are also entitled to six weeks maternity benefit in case of miscarriage. The Maternity Benefit Act, 1961 also makes certain other provisions to safeguard the interest of pregnant women workers.

Section 8 of the Maternity Benefit Act, 1961 provides that every woman entitled to maternity benefit shall also be entitled to receive from her employer medical bonus of Rs. 1000/-, if no pre-natal confinement and post-natal care is provided for by the employer free of charge.

The Maternity Benefit Act, 1961 regulates the employment of women in factories, mines, the circus industry, plantations and shops or establishments employing 10 or more persons except the employees who are covered under the Employees' State Insurance (ESI) 1948 for certain periods before and after child-birth and provides for maternity and other benefits.

As the Act provides maternity leave up to 12 weeks for all women. THE MATERNITY BENEFIT (AMENDMENT) ACT, 2017 NO .6 OF 2017 passed, extends this period to 26 weeks. However, a woman with two or more children will be entitled to 12 weeks of maternity leave.

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.

L’Oreal India enhances maternity leave to 26 weeks

L’Oreal India has enhanced maternity leave to 26 weeks from 14 weeks earlier in an effort to retain high-potential employees.

The new parental benefits include pre-commute assistance for expecting women employees starting from the sixth month of pregnancy and child care allowance for two years from the date of delivery. “The business case of an enhanced maternity leave policy and other parental benefits is to retain high potential talent, enhance productivity and make the company an attractive employer,” said Mohit James, director, human resources, L’Oréal India.

To help new mothers ease back into work, they can also avail of reduced work hours for two continuous weeks immediately after resuming work, said James. The policy also entitles fathers to paid leave of two weeks. Additionally, the adoption leave has been increased to 12 weeks for mothers and one week for fathers. L’Oréal India will also offer flexible working options to each parent as well as pre- and post-natal support and employee well-being sessions and dedicated HR and management support.

Deloitte declares 26 weeks of maternity leave for women employees; PWC, EY, KPMG to follow suit

The labour ministry is busy putting the amended Maternity Benefit Act together that would entitle working women in private sectors to 26 weeks of maternity leave from the existing 12, the big four consulting firms have already taken a leap. While Deloitte has declared 26 weeks of maternity leave for its woman employees, PricewaterhouseCoopers, EY and KPMG are in the process of finalising such policies.A severe crunch of woman employees at the top has pushed these companies to not only extend the maternity leave benefit, but also in introducing a slew of other initiatives to retain the valuable resource.

To be piloted for the first time in India, EY is also working out a programme called 'Maternal Coaching', where all the women at the leadership and senior positions will be trained to coach other women in their teams before and after maternity leave on not quitting the job.PwC is planning to retain women who leave for maternity with an 'umbilical cord' of up to seven years or so. This would allow women on maternity leave to be on the rolls of the company without actively working and without pay. "Though this is in the pipeline, they intend to offer all the training and updates to the women who go on maternity leave so that they are connected with the firm.

ET Bureau | Feb 19, 2016, 06.07 AM IST

International Comparison of  Maternity Leave

Country

Maternity Leave

Paternity Leave

Percentage of wages

Source of Funding

India

Act: 12 weeks

Bill: 26 weeks

No provision

Despite there being no legislation

15 days is allowed for male Govt Employee

100%

Employer

UK

52 weeks



14 consecutive


days

  • Women: 6 weeks paid at 90% of average weekly earnings; flat rate or 90% (whichever is less) for weeks 7-39; weeks 40-52 unpaid
  • Men: Flat rate benefit or 90% of average weekly earnings, whichever is less


Mixed (employers reimbursed up


to 92% by public funds)

South Africa

17 weeks

3 days

  • Women: 60%
  • Men: 100%
  • Women: Mixed (contributions from employer, employee, government)
  • Men: Employer Liability

Singapore

16 weeks

7 days

100% for first and second child

Mixed (8 weeks employer and 8


weeks public funds)

Brazil

17 weeks

5 days

100%

  • Women: Mixed (contributions from employer, employee, government)
  • Men: Employer Liability

China

14 weeks

No provision

100%

Employer contribution via


insurance scheme

France

16 weeks

11 days

100% up to a ceiling

Social insurance scheme

Australia

52 weeks

14 days

  • Women: 18 weeks at the federal minimum wage level
  • Men: Federal minimum wage

Public funds

Canada


17 weeks


(federal)


No provision

55% for 15 weeks up to a ceiling

Public Funds

USA


12 weeks


(federal)


No provision

Unpaid

No provision


Ref:http://www.prsindia.org/uploads/media/Maternity%20Benefit/
LB%20Maternity%20Benefit%20Bill%202016.pdf


Various countries have implemented different funding models in relation to maternity benefits. A 2014 ILO study on maternity leave provisions in 185 countries observed: 
  • In 25% of the countries, maternity benefits are paid solely by the employer (e.g. Kenya, Puerto Rico, Nigeria, Pakistan).
  • In 16 % of the countries, maternity benefits are financed by a combinations of funds from the employer and the government (e.g. United Kingdom, Germany).
  • In 58% of the countries, cash benefits are provided to pregnant women through national social security benefits (e.g. Norway, Australia).
  • In the remaining 1% of the countries, there was no provision for maternity benefits (namely, US and Papua New Guinea).

Improved maternity benefits could prove counterproductive: Survey

ET Bureau
Updated: May 01, 2018, A little over one year after India increased the maternity leave benefit to 26 weeks from 12 weeks, a survey said the move could be counterproductive to the cause of a diverse workplace in certain sectors unless other support measures are also undertaken.

According to a survey on the costs and benefits of the new regulations by leading employment services company TeamLease, at least 26 per cent of the 350 startups and small and medium enterprises (SMEs) that responded said they will prefer hiring a male candidate, given the cost of the six-month maternity leave benefit. About 40 per cent of respondents said they will hire women but will consider whether such a cost is worth the candidate.

However, 39 per cent of organisations said the move will have a positive impact and will lead to a happier workforce but 35 per cent of the respondents said that the six-month maternity leave will impact both cost and profitability.

“While many of the startups and SMEs are progressive, a significant number seems to be considering the consequences of this regulation.” Plus, even when organisations do have a policy of non-discrimination in hiring, the recruiting manager could take a short-term view. Therefore, just changing the law is not enough; reinforcements are needed at multiple levels.

c) Leave for miscarriage or medical termination of pregnancy.
In case of miscarriage or medical termination of pregnancy, a woman shall, on production of such proof, be entitled to leave with salary for a period of 6 weeks immediately following the day of her miscarriage or her medical termination of pregnancy. [Section 9 of the Maternity Benefit Act, 1961,]

d) Leave with wages for tubectomy operation
In case of tubectomy operation, a woman shall, on production of such proof as may be prescribed, be entitled to leave with wage or salary for a period of 2 weeks immediately following the day of her tubectomy operation.[Section 9A of the Maternity Benefit Act, 1961,]

e) Paid leave to adoptive mothers.
According to the 2016 Working Mother and AVTAR 100 Best Companies for Women in India, 70% of the companies offer paid leave to adoptive mothers. Only a few companies in India are treating adoption on a par with maternity leave.Among the jet-setting few is Accenture, which on Monday announced that it will provide 22 weeks leave irrespective of whether the child is biological, adopted or birthed through surrogacy.And among these, the ones that are most adoption friendly are IT majors, banks, insurers, FMCG players and automotive, chemical companies.

Accenture joins a club of corporates such as Standard Chartered, Citibank, Barclays, Murugappa group and HCL who choose to give 22-28 weeks leave for adoption surrogacy.Accenture  increased its adoption leave from the current eight weeks to 22 weeks and included a clause that puts surrogacy leave at 22 weeks. The move gains particular significance as the current statutory requirement is at three months or 12 weeks. While some companies choose to give parents as much as 28 weeks leave, others give their workforce one week leave, said the study.

On average, Indian companies choose to give their workers nine weeks leave to celebrate the latest entrant to their family. IT majors like HCL Tech lead the pack with 26 weeks surrogacy leave -on a par with maternity.Not far behind is Infosys with 16 weeks for the primary caregiver.International banks such as Standard Chartered, Citibank and Barclays, who choose to give between 22 and 28 weeks leave, have a liberal adoption policy globally. In India, they retain the same guidelines -proving highly beneficial to heterosexual couples who want to adopt, couples in a live-in relationship, same-sex couples and the rising population of single dads. Barclays, which has revised its maternity policy from 84 days to 154 days, introduced adoption leave in 2014.

At Mondelez India, mothers, who choose to adopt, get three months leave versus six-month maternity leave.But the company is offering a 15-month-flexi work option for all new parents, irrespective of whether they chose to adopt. Family-run business Murugappa Group also offer 24 weeks for adoption.
Read more at:
http://economictimes.indiatimes.com/articleshow/56214740.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst


f) Paternity Leave (INDIA)

Though it is  the mother who actually delivers the child, father plays an equally important role. A father is expected to be emotionally and physically available for both, mother and child, before and after the delivery. Infact, legally accepting and providing two months of paternal leave has resulted in a reduced divorce rate in Sweden.

In India, the Central Government in 1999 by notification under Central Civil Services (Leave) Rule 551 (A) made provisions for paternity leave for a male Central Government employee (including an apprentice and probationer) with less than two surviving children for a period of 15 days to take care of his wife and new born child. He can avail this leave 15 days before or within 6 months from the date of delivery of child. If such leave is not availed within the period, it shall be treated as lapsed. For paternity leave he shall be paid leave salary equal to the pay last drawn immediately before proceeding on leave. Also, the same rule applies when a child is adopted.

While paternity leave is sanctioned for government employees, there isn't any such law that indoctrinates the private sector to make it obligatory. Hence, paternity leave is open to interpretation by individual companies.

We all know and understand that for a healthy work culture and to get the optimum efficiency out of an employee, an employer must ensure to provide certain basic amenities like a comfortable work place, healthy working hours, giving the employee enough physical and mental rest etc. Being India where  family is of first and foremost importance, an employer needs to keep in mind that having a child is a start to the chapter of family for almost all, hence, it is an utter necessity to provide reasonable amount of maternity as well as paternity leaves. We must not forget that for a vulnerable new mother and her newly born child, father is the most important person to be around.

CA Technologies rolls out parent leave policy to promote greater work-life-balance

CA Technologies has rolled out a new parent leave policy to promote greater work-life-balance for parents across all countries for its employees. The company is offering all employees globally — male and female — a minimum of 12 weeks paid leave during the first 12 months following the birth or adoption of their child.

While the women employees at CA (India) continue to be eligible for a maternity leave of 26 weeks; the paternity leavepolicy allows all male employees who have babies born or adopted; a 12-week paid leave, according to a release.

“Our new family leave policy demonstrates that CA not only champions and supports diversity and inclusion, but also recognizes the importance of giving employees time to spend with their young families. We believe that this will encourage male as well as female employees to be actively involved in the initial months of caring for their new child," said Sunil Sankar, VP People Business Partner, CA India.

Male employees will be eligible for the paternity leave if they have 12 months service at the date the child is born, or for adoptive parents where a child is matched or newly placed with them. "Employees can opt to take a shorter period of leave if they choose, and salaries and benefits will continue to be paid in the normal way," the company release stated.



  • 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


h) 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.  Retirement Pension plans in India detailed >>

Facts [+]
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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.

H) Employees' Provident Fund
Employees’ Provident Fund  is compulsory for every company in which 20 or more people are employed.
The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952

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.

India: Employee’s Provident Fund or EPF is probably the most popular retirement saving scheme amongst salaried people. The government-run scheme is a savings scheme which is good for people who are looking for risk-free, guaranteed-return plans for retirement.Employees' Provident Fund is applicable to every employee who works under following establishments and  takes salary less than or equals to Rs. 15000/- per month.
  • Every establishment which is engaged in any one or more of the industries specified in Schedule I of the Act or any activity notified by Central Government in the Official Gazette. (List of Industries/Establishments)
  • Employing 20 or more persons .
  • Cinema Theatres employing 5 or more persons.
Contributions
By employee 12% of his/her salary
By employer 12% which is an amount equal to an employee contribution.

Withdrawal of Employee’s Provident Fund

(in-case of unemployment)
Employee who is a members can now withdraw 75% of their funds after one month of unemployment and maintain their PF account with the body. The retirement fund body also gave an option to its members to withdraw the remaining 25%  of their fund after two months of unemployment.

On retirement from service after attaining the age of 55 years. A member who has not attained the age of 55 years at the termination of the service shall withdraw the full amount standing to his/her credit.

In cases of migration from India for a permanent settlement abroad, the withdrawal is allowed. In cases of taking employment abroad, withdrawal is allowed.

In case of permanent disablement
A member can withdraw the total amount from the retirement kitty on retirement on account of permanent and total incapacity for work due to bodily or mental infirmity. This incapacity has to be certified by a medical practitioner. A member who is suffering from tuberculosis or leprosy even if contracted after leaving the service of an establishment on grounds of illness but before the payment has been authorised, shall be deemed to have been permanently incapacitated for work.

I) Employee’s Deposit Linked Insurance Scheme (EDLI)
The EDLI scheme was launched in 1976, and is available to all employers who provide EPF provision to their employees. The scheme offers life insurance coverage to the employees. All the employees who subscribe to the EPF scheme automatically get enrolled in the EDLI scheme.

– EDLI contribution by Employee: none.

– EDLI contribution by Employer: 0.50% (subject to a maximum of Rs.75)

EDLI scheme features and benefits:

  • The claim amount under the insurance scheme is 30 times the salary, according to a BankBazaar report. Salary is calculated as (DA + Basic Salary)
  • There is also a bonus of Rs 1.5 lakh which will also be paid along with the claim amount.
  • The quantum of coverage is directly linked to the salary of the employee.
Claim of EDIL
Only in case of the death of employee who is an contributor to EPF. The EDLI claim is only admissible if the deceased person was in active service at the time of death.

Example:
Let us assume person X was employed and was an active contributor in EPF, EPS and EDLI schemes. His monthly salary was Rs 15,000. Mr.X died on duty. Now when his nominee files for the EDLI claim, it will be (30 x Rs 15,000) + (Rs 1,50,000), which is Rs 6,00,000.


J) General provident fund (GPF)

General  Provident fund is a Social Security benefit specifically for the purpose of state and central government employees working in the India. To become a member of general provident fund, employee has to subscribe for its membership by way of contribution from his monthly salary.

Rate of Subscription
The amount of subscription is fixed by the subscriber himself. However, it cannot be less than 6% of the basic pay and not more than the basic pay(For class IV employees the percentage is…..). The minimum subscription is determined on the basic pay drawn on 31st March of the preceding financial year. Subscription may be enhanced twice and/or reduced once during the financial year.

BENEFITS TO THE MEMBERS OF THE GENERAL PROVIDENT FUND

1) Advance for Purchase of Dwelling Site.
2) Advance for Purchase of Dwelling House/Flat.
3) Advance for Construction of a House.
4)  Advance  for  Repayment  of  Housing  Loan  to  State  Government  Housing Board or any other Government recognised Housing Finance Body.
5) Advance for Illness viz. Hospitalization for more than a month major surgical operations or suffering from T.B.,leprosy, paralysis, cancer, heart ailment etc.
6) Advance for Marriage of Self/Son/Daughter/Sister/Brother.
7) Advance for Post Matriculation Education of Son/Daughter.
8)  Advance  for  Damage  to  the  property  Due  to  Natural  Calamity  (Flood/Earth Quake).
9) Advance for Member affected by cut in the supply of electricity.
10) Advance for Member who is physically handicapped.

The employees can withdraw their money and receive payments within 15 days. Employees can withdraw GPF for select purposes after completing 10 years of service, as against 15 years of service earlier. The money can be withdrawn for purpose of education (which includes primary, secondary and higher education), marriage of self and family members, in emergencies such as illness, buying property, cars and servicing bank loans. 

key points:

1. The relaxed rule for GPF withdrawal benefit  central government employees as subscribers can withdraw the outstanding money for purpose of children education - including primary, secondary and higher education, covering all streams and institutions. 

2. Money can also be withdrawn for expenses such as marriage and other ceremonies of self or family members and dependents, illness of self, family members or dependents and purchase of consumer durables.

3. Government has permitted GPF withdrawal of up to twelve months pay or three-fourth (75%) of the outstanding money in the General Provident Fund, whichever is less. In some cases such as for illness, the withdrawal may be allowed up to 90 per cent of the amount standing at credit of the subscriber.

4. 3/4th or 75% of the total outstanding amount in GPF can be withdrawn for purpose of buying a house, repayment of outstanding housing loan, purchase of land for building a house, constructing a house, reconstructing or making additions on a house already acquired and renovating, additions or alterations of ancestral house.

5. GPF money can also be withdrawn for the purpose of purchasing vehicles, repayment of car loans, repair and overhauling of vehicles and making deposit to book a vehicle.

6. For purchase of vehicle, a central government employee can withdraw 75 % of the amount at disposal in the GPF account or 75 per cent of the cost of vehicle whichever is less.

7. Employees can also withdraw 90% of the money without giving any reason from their provident fund accounts two years before retirement from the job. Earlier the employees were allowed to withdraw 90 per cent of money only a year before their retirement.

8. In further relaxation, head of department of the concerned employee will have the power to sanction withdrawal from the provident fund accounts and no documentary proof will be required to be furnished. An employee would be required to give a simple declaration for the purpose of withdrawal.

9. In case of emergencies such as illness of employee or his or her family member the money from the GPF can be withdrawn within 7 days.

10. The notification on GPF was dated March 7, 2017.




3. 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.


United States

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.      More Detailed >>   


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.


4. Leave Travel Concession

Leave Travel Allowance which means is an benefit/allowance paid to the employee by the employer when He/She is travelling with their family or alone. In many organisations, the year-end holidays are a norm. In others, the employees apply for long leave in advance, well ahead of their travel schedule. And if the travel costs are reimbursed by the employer,The LTC allows the grant of leave and ticket reimbursement to employees who are entitled under the rules to travel to their home towns and other places.

Any incidental expenses and the expenditure incurred on local journeys shall not be admissible under LTC. In case of a journey between places not connected by any public means of transport, the government employee will be allowed reimbursement for journey on transfer for a maximum limit of 100km covered by the private/personal transport based on self-certification.


5. UNEMPLOYMENT COMPENSATION

In USA an individual laid off by an organization covered by the Social Security Act may receive unemployment compensation for up to 26 weeks. Although the federal government provides certain guidelines, unemployment compensation programs are administered by the states, and the benefits vary state by state.

India: can withdraw 75% money from PF account in case of unemployment

The Employees’ Provident Fund Organisation (EPFO) announced that its members can withdraw 75% of their funds after one month of unemployment and maintain their PF account with the body. The retirement fund body also gave an option to its members to withdraw the remaining 25%  of their fund after two months of unemployment.  When applying for the withdrawal offline, you are required to fill out the Composite Claim Form which serves the purpose of three forms- Form 19 (For Final PF Settlement), Form 10C (For Pension Withdrawal) and Form 31 (For Part Withdrawal of PF amount).

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.



6. 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.    More Detailed >>

7. PAID LEAVES

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:

  • 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:
  1. New Year's Day, January 1
  2. Martin Luther King, Jr. Day, the third Monday in January
  3. Washington's Birthday, the third Monday in February
  4. Memorial Day, the last Monday in May
  5. Independence Day, July 4
  6. Labor Day, the first Monday in September
  7. Columbus Day, the second Monday in October
  8. Veterans Day, November 11
  9. Thanksgiving Day, the fourth Thursday in November
  10. Christmas Day, December 25

India

It consists of holidays which have to be observed compulsorily across India.These holidays are:

  1. Republic Day,
  2. Independence Day,
  3. Mahatma Gandhi's Birthday,
  4. Budha Purnima
  5. Christmas Day
  6. 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
  7. Diwali (Deepavali)
  8. Good Friday
  9. Guru Nanak's Birthday
  10. Eid ul-Fitr
  11. Eid al-Adha (Bakrid)
  12. Muharram
  13. Prophet Mohammad's Birthday (Id-e-Milad)
  14. Dussehra (Maha Navami)
  15. Dussehra (Vijay Dashami)
  16. Deepawali
  17. Eid al-Adha (Bakrid)
  18. Guru Nanak's birthday/Kartik Poornima
  19. Dr. B R. Ambedkar's Nirwan Diwas
  20. Moharram
  21. Christmas


8. MEDICAL BONUS

Every woman entitled to maternity benefit under Maternity Benefit Act,1961 (Maternity Benefit (Amendment) Act, 2017)b& also be entitled to receive from her employer a medical bonus of Rs.1,000/-, if no pre-natal confinement and post-natal care is provided for by the employer free of charge. Pre-natal Confinement Care means all the care before expected delivery and post natal care means care after delivery of child.

Is this medical bonus paid in addition to maternity leave?
Yest it is given to take care of the above pre-natal and post natal expenses.


9. 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.


10. Expenditure towards funeral in case of death of an employee.

It is mandatory for an organisation to pay expenditure towards funeral in case of death of an employee while in the course of employment. According to the Section 4(4) of Employee's compensation act 1923, employer is liable to pay funeral expenditure to the dependents of an employee who was killed or if dependents do not exist in such case, funeral expenditure should be paid to the person who actually incurred such expenditure.