Lm Ind Employee Benefits
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- Pages: 19
Population in excess of 1 Billion 35 States and Union Territories 24 Languages 7 Religions 3000 communities
INDIA Diversity Does
in language, culture and religion
this diversity extend to employee benefits?
Yes
& No
Companies providing benefit (%) Analysed items 2004 House Rent Allowance 97 Gratuity 95 Housing Loan 91 Medical reimbursement/ allowance 90 Insurance 89 Leave Travel allowance 87 Hospitalisation 86 Variable Bonus 85 Conveyance allowance 84 Superannuation 61 Car Loan 54 Social/ Sports club membership 51 Incentive/ Sales Commission 44 Hard Furnishing 39 Medical check-up 39 Fixed Bonus 33 Other allowances 26 Flexible benefit plan 16
Companies providing benefit (%) Analysed items 2004 House Rent Allowance 97 Gratuity 95 Housing Loan 91 Medical reimbursement/ allowance 90 Insurance 89 Leave Travel allowance 87 Hospitalisation 86 Variable Bonus 85 Conveyance allowance 84 Superannuation 61 Car Loan 54 Social/ Sports club membership 51 Incentive/ Sales Commission 44 Hard Furnishing 39 Medical check-up 39 Fixed Bonus 33 Other allowances 26 Flexible benefit plan 16
Companies providing benefit (%) Analysed items 2004 House Rent Allowance 97 Gratuity 95 Housing Loan 91 Medical reimbursement/ allowance 90 Insurance 89 Leave Travel allowance 87 Hospitalisation 86 Variable Bonus 85 Conveyance allowance 84 Superannuation 61 Car Loan 54 Social/ Sports club membership 51 Incentive/ Sales Commission 44 Hard Furnishing 39 Medical check-up 39 Fixed Bonus 33 Other allowances 26 Flexible benefit plan 16
Overview of Employee Benefit Scenario In India Employee Compensation Salary
Allowances & Bonus
Employee Benefits
Overview of Employee Benefit Scenario In India Employee Benefits Mandatory Providen t Fund
Gratuity
Personal Accident
Voluntar y Life Insuranc e
Leave Encashm ent
Mediclaim
Superannuation
Employee Benefits – Insurance Co’s viewpoint Employee Benefits Insuranc e Accide nt
Mediclai m
Retireme nt Life
Leave Encashme nt
Superannuat ion
Gratuity
Defined Benefit
Defined Contributi on
Mediclaim Insurance •Reimbursement of medical expenses following hospitalization •Cash less hospitalization facility available under certain plans •Tax deduction available for the business
Accident Insurance •Can offer compensation for any/all of the following: •Accidental death, disability •Medical expenses for treatment post accident • List of exclusions BOTH BENEFITS ARE OFFERED BY NON-LIFE INSURANCE COMPANIES
Life Insurance • Benefit payable on accidental/natural death (limited exclusions) • Convenient eligibility conditions • Additional Optional riders PROVIDED BY LIFE INSURANCE COMPANIES
Life Insurance – Trends • Monopoly of one single company so far • Increasing popularity amongst employers/ employees • General cover is about 3 to 5 times the gross annual salary • Companies with huge staff strength opt for profit-sharing
Leave Encashment –Defined benefit
For whom? – If company offers encashment of leave, all employees What benefit? – Will be based on the company policy. – Normally x days salary for each accumulated day of leave How Funded? – Institute of Chartered Accountants of India require that a provision be made for the liability. – No special tax benefits for self-funding through a trust – Insurance plans available to manage the funds
Gratuity – Defined Benefit
For whom? – Engaged in Factories, Mines, Plantations, Railways, Shops and establishments notified by Government – In service for 5 successive years What benefit? – 15 days wages for each year of service – Maximum limit Rs 3,50,000/ – 7 days wages per season for seasonal occupation How Funded? – Can be funded our unfunded. – Special tax concessions if funded through a trust or insurance company
Superannuation – Defined Contribution/ benefit
For whom? – Non-mandatory, defined by company policy What benefit? – Can be defined benefit(certain formula of last drawn salary) /defined contribution(certain %age of salary every month contributed to a fund) – Can be different for different grades How Funded? – Can be funded our unfunded. – Special tax concessions if funded through a trust or insurance company
Retirement Benefits - Trends • Only one life insurance company in the market till 2000 • Offered a cash-accumulation conventional scheme • More and more companies now funding through Insurance • Unit-linked – a preferred platform • Pensions benefits - from Defined Benefit to defined contribution
HDFC STANDARD LIFE INSURANCE HDFC SL is Insurope’s network partner in India
Employee Benefits – Insurance Co’s viewpoint Employee Benefits Insuranc e Accide nt
Mediclai m
Retireme nt Life
Leave Encashme nt
Superannuat ion
Gratuity
Defined Benefit
Defined Contributi on
Employee Benefits – Insurance Co’s viewpoint Employee Benefits Insuranc e Accide nt
Mediclai m
Retireme nt Life
Leave Encashme nt
Superannuat ion
Gratuity
Defined Benefit
Defined Contributi on
Contact Details Sanjeev Kapur Head - Group Sales • (+91) 98203 48755 • [email protected]
Vijay Vaidyanathan Manager – Group Sales • (+91) 98206 11998 • [email protected]
INDIA Diversity Does
in language, culture and religion
this diversity extend to employee benefits?
Yes
& No
Companies providing benefit (%) Analysed items 2004 House Rent Allowance 97 Gratuity 95 Housing Loan 91 Medical reimbursement/ allowance 90 Insurance 89 Leave Travel allowance 87 Hospitalisation 86 Variable Bonus 85 Conveyance allowance 84 Superannuation 61 Car Loan 54 Social/ Sports club membership 51 Incentive/ Sales Commission 44 Hard Furnishing 39 Medical check-up 39 Fixed Bonus 33 Other allowances 26 Flexible benefit plan 16
Companies providing benefit (%) Analysed items 2004 House Rent Allowance 97 Gratuity 95 Housing Loan 91 Medical reimbursement/ allowance 90 Insurance 89 Leave Travel allowance 87 Hospitalisation 86 Variable Bonus 85 Conveyance allowance 84 Superannuation 61 Car Loan 54 Social/ Sports club membership 51 Incentive/ Sales Commission 44 Hard Furnishing 39 Medical check-up 39 Fixed Bonus 33 Other allowances 26 Flexible benefit plan 16
Companies providing benefit (%) Analysed items 2004 House Rent Allowance 97 Gratuity 95 Housing Loan 91 Medical reimbursement/ allowance 90 Insurance 89 Leave Travel allowance 87 Hospitalisation 86 Variable Bonus 85 Conveyance allowance 84 Superannuation 61 Car Loan 54 Social/ Sports club membership 51 Incentive/ Sales Commission 44 Hard Furnishing 39 Medical check-up 39 Fixed Bonus 33 Other allowances 26 Flexible benefit plan 16
Overview of Employee Benefit Scenario In India Employee Compensation Salary
Allowances & Bonus
Employee Benefits
Overview of Employee Benefit Scenario In India Employee Benefits Mandatory Providen t Fund
Gratuity
Personal Accident
Voluntar y Life Insuranc e
Leave Encashm ent
Mediclaim
Superannuation
Employee Benefits – Insurance Co’s viewpoint Employee Benefits Insuranc e Accide nt
Mediclai m
Retireme nt Life
Leave Encashme nt
Superannuat ion
Gratuity
Defined Benefit
Defined Contributi on
Mediclaim Insurance •Reimbursement of medical expenses following hospitalization •Cash less hospitalization facility available under certain plans •Tax deduction available for the business
Accident Insurance •Can offer compensation for any/all of the following: •Accidental death, disability •Medical expenses for treatment post accident • List of exclusions BOTH BENEFITS ARE OFFERED BY NON-LIFE INSURANCE COMPANIES
Life Insurance • Benefit payable on accidental/natural death (limited exclusions) • Convenient eligibility conditions • Additional Optional riders PROVIDED BY LIFE INSURANCE COMPANIES
Life Insurance – Trends • Monopoly of one single company so far • Increasing popularity amongst employers/ employees • General cover is about 3 to 5 times the gross annual salary • Companies with huge staff strength opt for profit-sharing
Leave Encashment –Defined benefit
For whom? – If company offers encashment of leave, all employees What benefit? – Will be based on the company policy. – Normally x days salary for each accumulated day of leave How Funded? – Institute of Chartered Accountants of India require that a provision be made for the liability. – No special tax benefits for self-funding through a trust – Insurance plans available to manage the funds
Gratuity – Defined Benefit
For whom? – Engaged in Factories, Mines, Plantations, Railways, Shops and establishments notified by Government – In service for 5 successive years What benefit? – 15 days wages for each year of service – Maximum limit Rs 3,50,000/ – 7 days wages per season for seasonal occupation How Funded? – Can be funded our unfunded. – Special tax concessions if funded through a trust or insurance company
Superannuation – Defined Contribution/ benefit
For whom? – Non-mandatory, defined by company policy What benefit? – Can be defined benefit(certain formula of last drawn salary) /defined contribution(certain %age of salary every month contributed to a fund) – Can be different for different grades How Funded? – Can be funded our unfunded. – Special tax concessions if funded through a trust or insurance company
Retirement Benefits - Trends • Only one life insurance company in the market till 2000 • Offered a cash-accumulation conventional scheme • More and more companies now funding through Insurance • Unit-linked – a preferred platform • Pensions benefits - from Defined Benefit to defined contribution
HDFC STANDARD LIFE INSURANCE HDFC SL is Insurope’s network partner in India
Employee Benefits – Insurance Co’s viewpoint Employee Benefits Insuranc e Accide nt
Mediclai m
Retireme nt Life
Leave Encashme nt
Superannuat ion
Gratuity
Defined Benefit
Defined Contributi on
Employee Benefits – Insurance Co’s viewpoint Employee Benefits Insuranc e Accide nt
Mediclai m
Retireme nt Life
Leave Encashme nt
Superannuat ion
Gratuity
Defined Benefit
Defined Contributi on
Contact Details Sanjeev Kapur Head - Group Sales • (+91) 98203 48755 • [email protected]
Vijay Vaidyanathan Manager – Group Sales • (+91) 98206 11998 • [email protected]
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