What are the Most Common Employee Benefits in India?

India is considered one of the most promising economies with a diverse and efficient talent pool. Employee benefits in India are offered by employers to their employees to appreciate the latter's contribution towards the company’s success. They also provide a sense of satisfaction for the employees. As an employer, it is your duty to provide benefits beyond salaries.

Read more

Get right expert advice

Hassle free policy

Speedy Claims

Fast-track your search with instant quotes from prominent insurers

Get ₹30 lakh cover starting at ₹45,000+

Step 1/2

Get ₹30 lakh cover starting at ₹45,000+

secure-icon We don't spam
Get Updates on WhatsApp
View Plans

Get ₹30 lakh cover starting at ₹45,000+

Step 2/2
Fast-track your search with instant quotes from prominent insurers
Expert advice

Buy right

Instant policy

Quick & Hassle free

Dedicated team

Speedy Claims

What are Employee Benefits in India and Why are They Important?

Employee benefits are a great tool to boost productivity and keep employees focused. They help attract talented job seekers and can be effective in employee retention. Employee benefits, as the term suggest, can be anything over and above the salary, that can benefit employees.

For example, during the COVID-19 pandemic, many employers undertook vaccination drive campaigns for their employees and families. This is one of the most recent, common, and practical employee benefits offerings. A robust employee benefits program can:

- Positively impact talent retention strategy

- Inculcate loyalty

- Help reduce absenteeism

- Promote employee wellness

- Help stay competitive

Common Employee Benefits in India

Employee benefits are intended to make the employees feel appreciated. In India, these benefits plans can be mandatory (required by law) or willingly offered by the employer.

  1. Mandatory Benefits or Social Security Benefits

    These benefits are provided as a part of social security benefits and are governed by various legislations. Some of the common mandatory employee benefits in India are:

    - Employees Provident Fund (EFP): Governed by the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952, the employer and the employee contribution equally towards this plan.

    - Gratuity: If an employee completes 5 years of service with an organization, he is eligible to receive gratuity. Gratuity is managed by the Payment of Gratuity Act 1972.

    - Employee State Insurance (ESI): This scheme is mandatory for employees earning up to Rs 21,000 per month. (or Rs 25,000 per month for specially-abled employees). ESI is a comprehensive benefits scheme that covers medical costs for the employee’s family. Contributions towards this scheme are made by the employer, the employee, and the Government.

    - Maternity Leaves: Paid maternity leaves for 26 weeks are mandatory in India.

  2. Benefits Willingly Offered by Employer

    - Employee Group Insurance: In India, there are various types of group insurance schemes for employees, like group health insurance, group personal accident cover, group travel insurance etc. Employers offer group insurance plans to their employees based on the needs of the employee and the type of business it indulges in.

    - Group Health Insurance: Corporate health policy or group health insurance policy for employees is extremely beneficial as they cover medical costs in case of emergencies and in many cases, dependents are also added to this plan. This makes employees relaxed as the company takes care of the medical costs and helps the employees financially.

    - Wellness programs: Many organizations now provide health and wellness programs to their employees. These programs typically include teleconsultations, and physical and mental well-being programs like meditation sessions, fitness sessions etc.

    - Work flexibility: More and more companies are now shifting towards hybrid work, work-from-home models, and flexible work schedules. This acts as an added advantage for the employees as they can manage the work-life balance in a better manner.

    - Fringe benefits: These benefits may include food or restaurant coupons, travel facilities, bonuses etc.


Employee satisfaction directly affects the productivity of an organization. There are multiple employee benefits in India that employers can provide for their employee's social security and general well-being. The range of benefits offered by an employer goes a long way in retaining and attracting talent, thus, employers should choose these benefits wisely.

Policybazaar for Business - Group Insurance - Customer Reviews
View all
Based on 4 reviews
out of 5
Based on 4 reviews
0 users
4 users
0 users
0 users
0 users
4 January 31, 2022
Good Deals
We bought corona group health cover for our firm. It is still risky and to make sure the safety for everybody, we bought the cover. It was on a good deal on Policybazaar.
4 January 30, 2022
Quicker Than Expected
I bought group covid insurance for me and my team We are a small start-up and really needed this cover. I bought it from PolicyBazaar which was quicker than I expected.
4.3 January 30, 2022
Health Cover
As we have started travelling again, I had book group Covid-19 health plan for me and my employees. We are travelling frequently now and obviously needed this health cover.
4 January 30, 2022
Quick Claims
For myself and my staff, I purchased group covid insurance. This cover was critical for us as a modest start-up. I purchased it through PolicyBazaar, and it arrived much sooner than I anticipated.