5.2.8 Benefits of SQUARE

Employee benefits & services were formerly known as fringe benefits and these benefits were primarily the in-kind payments employees receive in addition to payments in the form of money.

In addition to paying employees fairly and adequately for their contributions in the performance of their jobs, organizations assume a social obligation for the welfare of employees and their dependents

Employee benefits are usually inherent components of the non-compensation system are made available to employees that provide:

– Protection in case of health & accident
– Income upon retirement & termination


These benefits are components that contribute to the welfare of the employee by filling some kind of demand.


Legally required benefits of SQUARE

• Social Security
– Social security benefits include the general benefits like unemployment insurance & benefits, old age insurance, and Medicare facilities.

• Workers’ Compensation
– Worker’s compensation includes the compensation when an employee becomes injured or disable due to extreme working conditions or while working at the job site.

• Family & Medical Leave
– Family leave includes the compensation continuation during the family leave such as maternity or paternity leave and other family leave.

• Old age, Survivor, Disability Insurance requirements for getting compensation:
– Earn 40 quarters of credit, or
– Be employed for 10 years
– Be age 62 for partial benefits
– Be age 65 for full benefits
– Now the age has been extended to age 67 because more and more workers are retiring late.
– Widow aged 60 +


Medicare

Depends on the country’s policy, medicare facilities are generally government services to citizens.Organizations add some value to medicare facilities. In some countries medicare is financed together by employees’ tax, employers and the government.

Provided insurance coverage for
– Hospitalization - Covers inpatient & outpatient hospital care & services.
– Major doctor bills – Charges of visiting a doctor or specialist.
– Prescription drug costs.
– Provides unlimited in-home care in certain situations.


Workers’ Compensation

• Workers’ compensation is a legally required benefit is included in the compulsory disability laws of many countries. Mostly, employer is seen liable regardless of the fault.

• Objectives of Workers’ compensation:
– Provide income & medical benefits
– Reduce litigation
– Eliminate legal fees & time
– Encourage employer safety
– Promote accident study & avoidance
• Workers’ compensation claims
– Injury
– Occupational disease
– Death

• Workers’ compensation benefits
– Medical services
– Disability income
– Death benefits


Discretionary Benefits

• Discretionary benefits are judgment based benefits that the organization provides to its employees. These benefits are not legally required benefits but enhances organizational culture and corporate image.

• Benefits include:
– Protection programs
– Pay for time not worked
– Other services


Pay for time not worked

• Holidays

• Vacations

• Funeral leave

• Marriage leave

• Sick leave

• Stress leave

• Blood donation or welfare work

• Personal leave

• Sabbatical leave/ For Muslims, leave after death

• Other religious leaves such as pilgrimage or preaching