SUPPLEMENTARY

BENEFITS

NEHA PAUL
(500021385)
YOGIATA SHARMA
(500020829)
Employee Benefits & Services
O Meaning and Definition

O Why Benefits and Services?

O Types of Employee Benefits and Services

O Principles of Fringes
 INTRODUCTION
O Would the three salespersons and the receptionist
work for free? No.

O You always have to give things to people in return

to what you take from them

O Compensation refers to this exchange.

O It is a means to attract, motivate and maintain

employee
 COMPENSATION

Direct Indirect

Basic Pay Incentives Benefits & Services

Why Benefits and Services?
O To persuade and motivate employee.

O Not linked with the employee performance

O Includes any benefits employee receive apart

from the total direct benefits

O Helps increase the wealth and well-being of

the employee at the cost of an employer
 BENEFITS
O Indirect Compensation or benefits received
from employment that is in addition to the
regular, ordinary salary or wages.

Types of Employee
Benefits

Supplemental Insurance Retirement Time-Off

Pay Benefits Benefits Benefits
 Supplemental Benefits
Pay For Time Not Worked

Unemployment Vacations and

Insurance Holidays

Supplementa
Sick Parental
Leave l Pay Leave
Benefits

Supplemental
Severance
Unemployment
Pay
Benefits
 Insurance Benefits

Health-Related Insurance
Disability Insurance
• Medical Insurance
Short Term Disability
• Managed Care
Long Term Disability
• Vision Insurance Insurance
• Dental Insurance Benefits
• Mental Health Insurance

Life Insurance
 Retirement Benefits
Retirement plans to reward long service employees

 Contributory Plan:

Both employer and employee contribute

 Non-Contributory Plan:

Employer pays the entire amount.

Early Retirement
Also includes
Retirement Counseling
 Time- Off Benefits
Rest from physical and mental efforts of a job
On the Job breaks
Sick days and Well
Tea break, Meal break days
etc.

Time-Off
Holidays and Breaks
Vacations Leaves of Absence

Family and Medical leave Act 1993

 SERVICES
O An intangible commodity that the employees find
desirable

O Usually provided by the organization at no cost to

employee or at a significant reduction from what
might have to be paid without the organization’s
support.

O This might include eating facilities, transportation

facilities, child care facilities, housing services ,
educational services, financial services (discount )
etc.
 BENEFIT v/s SERVICE
Applies to those items for
which a direct monetary
value to the individual
employee can be ascertained
Applies to items for which a
direct money value for the
individual employee cannot be
readily established
 Benefits and Services

Tokens
Treats
Knick-knacks
Awards
• Early time-offs
• Picnics
• Diaries/Planners • Movie tickets
• Birthday • Certificates
• Calendars • Coupons
treats • Citations
• Wallets redeemable at
• Festival • Plaques
• T-shirts stores
bashes • Trophies
• Company watches • Vacation trips
• Dinner for • Scrolls
• Bags • Anniversary and
the family • Letters of
• Desk accessories birthday
• Coffee breaks appreciation
• Tie-pins/Brooches allowances/prese
• Dinner boss
nts
• Free lunches
THANK YOU!
Any queries?????