Types Of Employee Benefits

 In this article we shall comprehensibly talk about some common types of employee benefits for general understanding and knowledge. But what are employee benefits? Employee benefits are basically perks which are offered by an organization or employer to the respective employees in addition to salary. Some of the common type of employee benefits include life insurance, medical, disability, fringe benefits, paid leaves, etc. perks encourage employee output, productivity and loyalty to the organization.  benefits are very valuable to the employees even though it amounts to major expenditure for the company or the organization. For instance medical insurances can be cost significantly to an organization. This is why it is important for an organization to consider these under net expenditure, coverage and compensation. 


Medical insurance: this is to cover the expense of a medical treatment pertaining to certain health issues of an employee. This covers for certain expenses such as the cost of physician, surgeon, hospital rooms, medication, etc. in some cases dental and optical coverage is also provided in the package. However, it is not very general. Sometimes a package may also cover the employee’s dependents as well (immediate family). Usually the expense is shared, that is, employers add a part to the fund and the rest is paid by the employee from his salary every month (a percentage of his salary is added to the fund). 

Retirement benefits: retire benefits provide for a salary or income (in the form of pension) to people who have retired from a particular organization or office, upon completion of their natural course of career. For retirement benefits, funds are set aside. There are usually two categories: Defined Benefit Plans and Defined Contribution Plans. 

Fringe Benefits: these are mostly non-cash payments in order to attract and retain skillful employees in an organization. This can be a miscellaneous privilege. For instance, it can include non-production bonus, child-care benefits, tuition assistance, etc. Tuition reimbursements can be extremely lucrative and encouraging for many benefits and employers can work on that. 

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