India Statutory and Private Employee Benefits, 2023 Update
All the vital news, analysis, and commentary curated by our industry experts.
The Indian social security system only covers employees in the organized sector, which accounts for less than 10% of the country’s workforce. As the unorganized sector is continuously growing the Government of India has launched several social security measures related to healthcare, pension, and direct cash transfer schemes for people who do not have access to any formal scheme.
The India employee benefits report provides in-depth industry analysis, information, and insights of employee benefits, overview of the state and compulsory benefits, detailed information about the private benefits, insights on various central institutions responsible for the administration of the different branches of social security and the regulatory framework of the employee benefits in India.
|Trade Union Act 1926, Employees’ Provident Fund and Miscellaneous Provisions Act 1952, Employees’ State Insurance Act 1948, Industrial Employment (Standing Orders) Central Rules 1946, Industrial Disputes Act 1947, Maternity Benefit Act 1961, Payment of Bonus Act 1965, Payment of Gratuity Act 1972, Equal Remuneration Act 1976, Employees’ Deposit Linked Insurance Scheme 1976, Information and Technology Act 2000, Rights of Persons with Disability Act 2016, Code on Wage, 2019, and Industrial Relations Code, 2020
|Key State and Compulsory Benefits
|Retirement Benefits, Death in Service, Long-Term Disability Benefits, Short-Term Sickness Benefits, Medical Benefits, Workers’ Compensation Insurance, Maternity and Paternity Benefits, and Other Benefits
|Key Private Benefits
|Retirement Benefits, Death Benefits, Medical Benefits, Disability Benefits, Accidental Death and Dismemberment Benefits, and Other Benefits
Employee Benefit Regulations in India
The key regulations guiding the employee benefits market in India are:
- Trade Union Act 1926
- Employees’ Provident Fund and Miscellaneous Provisions Act 1952
- Employees’ State Insurance Act 1948
- Industrial Employment (Standing Orders) Central Rules 1946
- Industrial Disputes Act 1947
- Maternity Benefit Act 1961
- Payment of Bonus Act 1965
- Payment of Gratuity Act 1972
- Equal Remuneration Act 1976
- Employees’ Deposit Linked Insurance Scheme 1976
- Information and Technology Act 2000
- Rights of Persons with Disability Act 2016
- Code on Wage, 2019
- Industrial Relations Code, 2020
- The Occupational Safety, Health, and Working Conditions Code, 2020
- Code on Social Security, 2020
For more insights on employee benefit regulations in India, download a free report sample
India Employee Benefits Segmentation by State and Compulsory Benefits
The key state and compulsory benefits offered by employers in India are retirement benefits, death in service, long-term disability benefits, short-term sickness benefits, medical benefits, workers’ compensation insurance, maternity and paternity benefits, and other benefits.
Retirement Benefits: Retirement benefits are typically paid to employees upon their death, retirement, resignation, or retrenchment by their current or former employer. Retirement benefits in India are provided under the Employees’ Provident Fund (EPF) Scheme, the Gratuity Scheme, the Employee Pension Scheme (EPS), the National Pension Scheme (NPS), and Superannuation.
Workers’ Compensation Insurance: Workers and their dependents are covered under the Workmen’s Compensation Act 1923, which was renamed the Employees’ Compensation Act 1923 by the Workmen’s Compensation (Amendment) Act 2009. Employees receive compensation from employers in case of bodily injury or death due to accidents or occupational diseases during employment, depending on the nature of the injury, average monthly wages, and the worker’s age.
Maternity and Paternity Benefits: The Maternity Benefit (MB) Act 1961 regulates the benefit, which covers up to two deliveries (including caesarian). In companies where ESI is available, it will come into force before the benefits available from the MB act. The Central Industrial Relations Machinery (CIRM) in the Ministry of Labor is responsible for implementing this act, as per which no organization should recruit a woman and no woman should work during the six weeks immediately following the day of her delivery or miscarriage.
To know more about state and compulsory employee benefits in India, download a free report sample
India Employee Benefits Segmentation by Private Benefits
The key private benefits offered by the employers of India are retirement benefits, death benefits, medical benefits, disability benefits, accidental death and dismemberment benefits, and other benefits.
Retirement Benefits: In India, the statutory pension system (EPF and EPS) is predominant. The Indian Government has been actively developing the retirement benefits sector by changing the design, operation, and governance of retirement schemes. It opened NPS to all and introduced new retirement schemes such as Atal Pension Yojana (APY) for both organized and unorganized sectors to cover employed, self-employed, and casual workers. Also, the private retirement system in the country is rapidly developing with many employers offering voluntary supplementary retirement benefits to their employees.
Medical Benefits: In India, all employers provide medical benefits to their employees by subscribing to group medical insurance plans, which also covers spouses and dependent children. From April 15, 2020, the Government of India made private health insurance mandatory for all employers resuming operations post-COVID-19 lockdowns.
Disability Benefits: The disability has already been covered under Workers’ Compensation and other government policies. Therefore, private disability benefit is not prevalent in India. Companies offer short-term and long-term disability benefits as part of Accidental Death & Dismemberment (AD&D) insurance. Companies provide this benefit through group disability insurance. Companies usually do this to attract and retain new and existing employees.
To know more about private employee benefits in India, download a free report sample
This report provides a detailed analysis of employee benefits in India –
- It offers a detailed analysis of the key government-sponsored employee benefits, along with private benefits.
- It covers an exhaustive list of employee benefits, including retirement benefits, death in service, long-term disability benefits, medical benefits, workmen’s compensation insurance, maternity and paternity benefits, family benefits, unemployment benefits, Long-term care benefits, leaves and holidays and private benefits.
- It highlights the economic and regulatory situations relating to employee benefits in India.
• The Employees’ State Insurance Act 1948 (ESI Act), The Employees’ Provident Funds & Miscellaneous Provisions Act, 1952 (EPF & MP Act), The Employees’ Compensation Act, 1923 (WC Act), The Maternity Benefit Act, 1961 (MB Act), and The Payment of Gratuity Act, 1972 (PG Act) are responsible for the functioning of the overall social security system.
• A person’s national insurance contribution is determined based on their income.
• An insured person who is unemployed or unable to work and whose benefits have been exhausted is entitled to a credited contribution.
• In India, employers provide voluntary retirement benefits to their employees through Atal Pension Yojana and Swavalamban scheme.
Reasons to Buy
- Make strategic decisions using in-depth information related to employee benefits in the country.
- Assess employee benefits of the market, including state and compulsory benefits and private benefits.
- Gain insights into the key employee benefit schemes offered by private employers in the country.
- Gain insights into key organizations governing employee benefits market, and their impact on companies.
Table of Contents
- 1. Executive Summary
- 2. Introduction
- 2.1 What is this Report about?
- 2.2 Definitions
- 3. Country Statistics
- 4. Overview of Employee Benefits in India
- 5. Regulations
- 6. State and Compulsory Benefits
- 6.1 Retirement Benefits
- 6.2 Death in Service
- 6.3 Long-Term Disability Benefits
- 6.4 Short-Term Sickness Benefits
- 6.5 Medical Benefits
- 6.6 Workers’ Compensation Insurance
- 6.7 Maternity and Paternity Benefits
- 6.8 Other Benefits
- 7. Private Benefits
- 7.1 Retirement Benefits
- 7.2 Death Benefits
- 7.3 Medical Benefits
- 7.4 Disability Benefits
- 7.5 Accidental Death and Dismemberment Benefits
- 7.6 Other Benefits
Table 1: Insurance Industry Definitions
Table 2: India – Country Statistics, 2021
Table 3: India – Retirement Benefits, Chronological Order of the Change of Wage Ceiling for EPF
Table 4: India – Gratuity Amount, 2023
Table 5: India – Additional Amount of Pension For Elderly
Table 6: India – Retirement Benefits (Private Employees), Contribution Rates (% of Wages) to Benefit Schemes
Table 7: India – Fixed National and Public Holidays 2023
List of Figures
Figure 1: India – Main Institutions of Social Security System
Frequently asked questions
What are the key regulations guiding employee benefits in India?
The key regulations guiding employee benefits market in India are Trade Union Act 1926, Employees’ Provident Fund and Miscellaneous Provisions Act 1952, Employees’ State Insurance Act 1948, Industrial Employment (Standing Orders) Central Rules 1946, Industrial Disputes Act 1947, Maternity Benefit Act 1961, Payment of Bonus Act 1965, Payment of Gratuity Act 1972, Equal Remuneration Act 1976, Employees’ Deposit Linked Insurance Scheme 1976, Information and Technology Act 2000, Rights of Persons with Disability Act 2016, Code on Wage, 2019, and Industrial Relations Code, 2020 among others.
What are the key state and compulsory benefits for employees in India?
The state and compulsory benefits for employees in India are retirement benefits, death in service, long-term disability benefits, short-term sickness benefits, medical benefits, workers’ compensation insurance, maternity and paternity benefits, and other benefits.
What are the key private benefits for employees in India?
The private benefits for employees in India are retirement benefits, death benefits, medical benefits, disability benefits, and accidental death dismemberment benefits, and other benefits.
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