Guide to Employee Benefits in India

Provident Fund (PF): A portion of the employee's base salary is deposited into the Provident Fund by both the employer and the employee. This amount grows with interest and can be withdrawn at the time of retirement.

Gratuity: Gratuity is a lump sum amount paid by the employer to the employee as a token of appreciation for the services rendered by the employee. Gratuity is payable only to those employees who have completed at least five years of continuous service with the employer.

Pension: Employers can provide a pension scheme to their employees. Under this scheme, the employee receives a regular pension after retirement.

Superannuation: Employers can also provide a superannuation scheme to their employees. Under this scheme, the employer contributes a certain amount towards a retirement fund for the employee, which grows with interest and can be withdrawn at the time of retirement.

Employee Stock Ownership Plan (ESOP): Employers can also provide ESOPs to their employees, which allow employees to own a stake in the company. This can provide a source of income after retirement if the company performs well.

Annual leave: Employees are entitled to at least 21 days of paid annual leave in a year. Some companies may offer more than this as a part of their employee benefits package.

Sick leave: Employers must provide paid sick leave of up to 12 days in a year to employees.

Maternity leave: Female employees are entitled to 26 weeks of maternity leave, out of which up to eight weeks can be taken before the expected delivery date. The employer must provide this leave with full pay.

Paternity leave: Male employees are entitled to paternity leave of up to 15 days. Some companies may offer more than this as a part of their employee benefits package.

Casual leave: Employers may offer casual leave to employees for short-term absences, such as for personal or urgent reasons. The number of days and whether it is paid or unpaid is up to the discretion of the employer.

Compensatory leave: Employees who work on a public holiday may be entitled to a compensatory leave day, which is granted in lieu of the public holiday.

Bereavement leave: Employers may offer bereavement leave to employees in the event of the death of an immediate family member. The number of days and whether it is paid or unpaid is up to the discretion of the employer.