Why to wish for Employee Benefits?
Starting a business or company requires many a things like sound knowledge of the industry, funding sources, legal certification along with capable employees or human resources. Ranging from SMEs to big corporate houses all need good employee for growth of their business. Good employees are the priceless assets of the company. Companies offer employee benefits in terms of health or life insurance policies as a gratitude to the worker’s effort. Also it helps the business owners to attract new and productive workers.
Definition of “Employee Benefits” for employees:
Employee benefits are like a benefit package for the employees. It is a help for them to overcome accidental or other health related issues. It also helps them in their old age as a source of income against daily expenses.
Definition of “Employee Benefits” for employers:
It is a very effective and useful benefits package from the employers for employees. It makes their offer lucrative for any recruit.
An employee benefit includes:
- Pension:
In terms of defined contribution pension, both employee and the employer deposit a defined amount of cash every year in the pension account. What both of them deposited throughout is considered to calculate amount of the pension entitled, when the employee retires. Nowadays most of the private sector companies luring their employees with it.
Another kind of pension i.e. defined benefit is not readily accepted by the small or private companies. Through in this plan the employee gets the pension amount according to the calculation of the final salary and the time period of employment.
- Life Insurance:
Death in service or Life Insurance compensates a tax-free lump sum if a staff dies before retirement. It is offered to give support to the dependents on the employee. It's calculated as a definite multiplication of their salary.
- Sick Pay:
Statutory Sick Pay covers the employees for their first six months off due to injury or illness. Occupational Sick Pay (OSP) gives employees more cover than statutory sick pay for a longer time.
- Income Protection:
IP or Income Protection policies can be arranged in diverse ways by an employer. Generally Income Protection policies begin after six months off-work. The payments continue till his/her retirement age or the employee goes back to work. Several policies have limitations of a certain period off-work benefits, rather continuing till the retirement age through ‘limited term’ plan. Usually 60 to 80% of the salary paid through Income Protection, if the employee cannot join back due to a long-lasting sickness or injury.
- Private Medical Insurance:
Private Medical Insurance or PMI accounts the expenditure of personal treatment of the employees in case of medical problems. It does not cover all medical irregularities, so it's essential for employees to verify the policy details to ensure what is enclosed. Private Medical Insurance is also a taxable benefit offered by the employer.
- Dental Insurance:
Same like PMI (Private Medical Insurance), the employees get paid for treatment of dental problems. Sometimes for visual problems also the employers offer insurance.
- Critical Illness Insurance (CII):
Critical Illness Insurance (CII) pays a tax-free lump sum to the employee for treatment for a number of specific health conditions.
- Health Screening:
Health screening offers regular health check up. This normally includes physical checkups to identify any current health issues an employee may not be aware of.
- Share Schemes:
Share schemes include employers giving their employees free shares in the business. Schemes can be restricted to privileged levels of employee, or need completion of a fixed number of years of employment.
- Other money-saving benefits:
Employee Benefits also includes childcare vouchers, car allowance, interest free travel loan, etc. All these are meant for the employee to gain several advantages from Employee Benefit plans.
If you are looking for any type of insurance plans for you then please send us mail at info[@]cbsi[.]ca. We are the leading Insurance and Investment brokerage house in Canada. We will be glad to help you in this issue.