22  Discretionary major employee benefits

Beyond the benefits required by law, companies offer a wide range of discretionary benefits (also known as voluntary or fringe benefits) to attract, retain, and motivate employees. These benefits are offered at the employer’s discretion and often reflect the company’s culture and commitment to employee well-being.

Here are the major categories of discretionary employee benefits commonly offered by companies in India:

22.0.1 1. Enhanced Health and Wellness Benefits

These are often the most valued benefits beyond the mandatory ESI. They provide a comprehensive health safety net for employees and their families.

• Group Medical Insurance: Private health insurance coverage for employees and often their dependents (spouse, children, and sometimes parents). This is the most common and sought-after discretionary benefit.
• Dental and Vision Insurance: Separate insurance plans that cover expenses related to dental care and vision correction (like glasses or contact lenses).
• Life and Accident Insurance: Higher sum-assured life insurance and personal accident policies that provide greater financial security than the statutory minimums.
• Wellness Programs: Initiatives focused on proactive health management, such as:
  • Annual health check-ups.
  • Gym memberships or fitness allowances.
  • Mental health support through Employee Assistance Programs (EAPs).
  • Yoga, meditation sessions, and stress management workshops.

22.0.2 2. Financial and Long-Term Wealth Benefits

These benefits are designed to enhance an employee’s financial security and help them build wealth over the long term.

• Employee Stock Ownership Plans (ESOPs): The opportunity for employees to buy company stock, often at a discounted price. This gives them a sense of ownership and allows them to share in the company’s success.
• Performance Bonuses: Annual or periodic bonuses paid out based on individual, team, or company performance. This is a direct incentive for high achievement.
• National Pension System (NPS): Many companies facilitate contributions to the NPS as a voluntary retirement savings tool, often including an employer co-contribution.
• Financial Wellness Programs: Workshops and counseling on topics like financial planning, investment management, and tax planning.

22.0.3 3. Work-Life Balance and Flexibility

These benefits are increasingly important for employee satisfaction and retention, helping employees balance their professional and personal lives.

• Flexible Work Arrangements:
  • Remote Work/Hybrid Models: The option to work from home full-time or for a few days a week.
  • Flextime: Allowing employees to choose their start and end times within a given window.
• Additional Paid Time Off: More generous leave policies than the statutory minimum, including:
  • Higher number of earned, casual, or sick leave days.
  • Paternity Leave: Paid leave for new fathers (a very common benefit in progressive companies).
  • Adoption Leave: Paid leave for employees adopting a child.
  • Caregiver Leave: Time off to care for sick family members.
• Childcare Support: Subsidized or on-site crèche facilities, or allowances for childcare expenses.

22.0.4 4. Other Common Perks and Allowances

These benefits, while smaller, contribute significantly to a positive work environment and employee convenience.

• Meal Allowances: Subsidized meals in the company cafeteria or meal vouchers/cards.
• Transportation Benefits: Company-provided transportation, cab services, or a travel allowance to cover commuting costs.
• Learning and Development: Sponsoring higher education, professional certifications, and training programs to help employees grow their skills.
• Employee Discounts: Offering company products or services to employees at a discounted rate.