Employee benefits can be defined in-kind payments of which are not awarded in the form of money but offered by an employer on top of the wages offered to the employees. The employee enjoys the following benefits offered by their employer.
The first and most common health benefit offered by employees is a health care coverage which caters for an employee’s health that of his close family members including his or her children and the spouse. This benefit covers medical expense the employee may have to incur. Most employees opt to pay a sum amount to an insurance company which in-turn covers the employees and their family members. All the employee needs to do is visit a hospital and present an identification document which proves that they are covered. Optical, dental and ear medical expenses can be part of the medical cover for a limited number of sessions in a year or may not be offered at all. Employees benefit from the health care coverage as they don’t incur the expenses for their medical care which are currently very expensive.
A disability cover is the second benefit an employee enjoys from his or her employer. Under this benefit, the employer offers an amount of money to the employer involved in an accident until they can get back to work. The employee is the only beneficiary of this benefit unlike in the medical benefit which covers some members of his or her family. The injury caused by accident can either be temporary which prompts the payment of the benefit until the employee can resume his or her duties or permanent where the employer has to pay the employee benefits until he or she reaches the retirement age. The advantage of this benefit is that the employee can cater for themselves and their medical needs regardless of being out of work or unable to work due to a disability.
The third benefit offered to the employees is a retirement benefit. When the employee reaches their old age, they don’t have the energy to work or fend for themselves and for this reason the employer sets up a retirement benefit for them. Money for this fund is obtained from regular deductions of the employee’s salary which is paid later on when they retires in two phases, a lump sum and equal monthly installments for the remaining amount. This guarantees care for the basic and health care needs of the retired employee.
Life insurance or the pension scheme is also a benefit the employer offers to his or her employee. In the event of the death of the employee, this money is paid to the family members of the employee as a back-up of their financial needs in the absence of their loved one.
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