Professional Documents
Culture Documents
Analysis
Sridhar Varadharajan –
09020241047 Vishal Singla –
09020241048
Benefit Costs
Cost incurred by an organization towards
the welfare programs of its employees.
Employee
Employee Benefits
Benefits
Mandatory
Mandatory Voluntary
Voluntary
Life
Life Leave
Leave
Provident Insurance
Insurance Encashment
ProvidentFund
Fund Gratuity
Gratuity Encashment
Mediclaim Super-
Super-
Personal
Personal Mediclaim annuation
Accident annuation
Accident
Common Benefit Costs
Uncommon Benefit Costs
Benefit Costs : Trend
Indian Scenario
As per the study by the Watson Wyatt
India :
Average 10% rise in the premium over last 3 Years.
58 per cent of the companies did not deduct any
premium costs out of employee salaries.
46 per cent did not plan to share the costs with the
employees even in the coming year
Source: Business Line Dec. 30 2009 Edition
DNA News Daily Dec. 28 2009 Edition
Indian Scenario Cont…
40% of Indian companies consider health
care cover as a value differentiator for
employees.
Companies use it in the hiring and retention
strategy. 17% of the companies cover post
retirement medical expenditure.
74% of the companies are stressing on
employee education around health care.
Means of Controlling Benefit Cost
Cost sharing
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