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Employee Benefits

Employee Benefits. By Muhammad Zohaib Sufyan SZABIST. Employee Benefits. Non-Financial Rewards offered to provide security for employees and their families subsequently attract and retain employees. Cost of Benefits.

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Employee Benefits

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  1. Employee Benefits By Muhammad Zohaib Sufyan SZABIST

  2. Employee Benefits Non-Financial Rewards offered to provide security for employees and their families subsequently attract and retain employees

  3. Cost of Benefits • Typically cost of benefits amounts to 40% of the cash rewards paid to employees • All benefits are funded by contribution from employer, employee or both • Some benefits employer are legally provide to every employee and some are optional

  4. Types of Benefits • Legally Required Benefits • Health & Life Insurance • Retirement Benefits • Paid Time off • Profit Sharing Plans • Position Specific Benefits • Flexible working schedule • Employee Services

  5. Legally required benefits • EOBI (Employee Old-Age Benefit Institution) • SESSI (Sindh Employees Social Security Institution) • Gratuity • Leaves (Sick, Casual, Annual, Maternity) • Profit Bonus

  6. Health Insurance • A health insurance is engaged to take care of health related needs of employees, which covers • Hospitalization needs • Out-patient service • Usually this insurance covers employee and immediate family • A group health insurance plan is taken by the employer in which each employee & family is covered (Different plans for different level of employees) • Insurance company charges insurance premium based on • No. of Employees • Age of Employees • Gender & Marital Status • Benefits offered

  7. Life Insurance • Usually covers employees only in case of normal or accidental death • A handsome amount is paid to legal heirs of employees • Amount doubles in accidental deaths • Company usually purchase a group insurance plan where all employees are covered • Insurance company charges premium based on • Ages of Employees • Amount of Benefits offered

  8. Retirement Benefits • Basically Include • Gratuity • Provident Fund • Pension Plans • Gratuity is calculated on (no. of years of service x last drawn monthly salary) • Funded • Unfunded

  9. Provident Fund (Retirement Plans) • A defined % of salary on monthly basis is contributed by the employees in this fund created by company • Same amount of money company needs to add to that fund for each employee • Money in the fund is then invested in government securities and partly in open market • Return of the investment is given to employees • Employees have the facility to take loan from their provident fund • Income on provident fund investment is tax free

  10. Pension (Retirement Plans) • Basically are of two types • Defined Contribution Plan • Defined Benefit Plan • Defined Contribution Plan • Contribution of specific amount of fund by employer • Final income depends on success of investment • Defined Benefit Plan • Promises to pay fixed amount as retirement income • Based on employees last salary

  11. Paid Time Off • As per legal requirements of Pakistan, employer should give • 14 Annual / Earned • 10 Casual • 8 Sick • All these leaves are fully paid • Some companies give LFA (Leaves Fare Assistance) as well • Expats are also given all expenses paid return trips with family back to their hometown • Any leaves earned not availed in a given year is either carry forwarded to next year or encashed

  12. Profit Sharing Plan • As per labor laws of Pakistan every employee is entitled to • 10-C Bonus (5% of the profitability of the company) • Production & Profitability bonuses • Employee Share Option Scheme (ESOS) • Employees are entitled for company’s shares which matures after a specific time period • Employees are given shares on subsidized rates to be paid in installments over a period of time.

  13. Position Specific Benefits • Car (Company Maintained) • Fuel • Club Membership • Children Education • Mobile Phone / Blackberry • Laptop & Internet Services

  14. Flexible Working Schedule • Flexible working schedule • Flexible coming and going timings with minimum and maximum limits • Limit of total working hours per week is fixed • Flexible workplace • Can work from anywhere • Wireless office connectivity given • Compulsory to attend meetings • Work is done according to objectives and their deadlines need to be met

  15. Employee Services • Financial, Legal and Psychological counseling • Tax preparation & filing • Education Subsidies • Child Care Centers • Adult/Spouse care leaves • Subsidized / Free food services • Physical Fitness opportunities • Social & recreational activities • Parking Charges • Transportation to and from work • Relocation Expenses • Emergency Loans • Housing Colonies • On-Site Health Services

  16. Thank You

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