1. Employee Benefits By Muhammad Zohaib Sufyan SZABIST

2. Employee Benefits Non-Financial Rewards offered to provide security for employees and their families subsequently attract and retain employees

3. Cost of Benefits  Typically cost of benefits amounts to 40% of the cash rewards paid to employees  All benefits are funded by contribution from employer, employee or both  Some benefits employer are legally provide to every employee and some are optional

4. Types of Benefits  Legally Required Benefits  Health & Life Insurance  Retirement Benefits  Paid Time off  Profit Sharing Plans  Position Specific Benefits  Flexible working schedule  Employee Services

5. Legally required benefits  EOBI (Employee Old-Age Benefit Institution)  SESSI (Sindh Employees Social Security Institution)  Gratuity  Leaves (Sick, Casual, Annual, Maternity)  Profit Bonus

6. Health Insurance  A health insurance is engaged to take care of health related needs of employees, which covers Hospitalization needs Out-patient service  Usually this insurance covers employee and immediate family  A group health insurance plan is taken by the employer in which each employee & family is covered (Different plans for different level of employees)  Insurance company charges insurance premium based on No. of Employees Age of Employees Gender & Marital Status Benefits offered

7. Life Insurance  Usually covers employees only in case of normal or accidental death  A handsome amount is paid to legal heirs of employees  Amount doubles in accidental deaths  Company usually purchase a group insurance plan where all employees are covered  Insurance company charges premium based on Ages of Employees Amount of Benefits offered

8. Retirement Benefits  Basically Include Gratuity Provident Fund Pension Plans  Gratuity is calculated on (no. of years of service x last drawn monthly salary) Funded Unfunded

9. Provident Fund (Retirement Plans)  A defined % of salary on monthly basis is contributed by the employees in this fund created by company  Same amount of money company needs to add to that fund for each employee  Money in the fund is then invested in government securities and partly in open market  Return of the investment is given to employees  Employees have the facility to take loan from their provident fund  Income on provident fund investment is tax free

10. Pension (Retirement Plans)  Basically are of two types Defined Contribution Plan Defined Benefit Plan  Defined Contribution Plan Contribution of specific amount of fund by employer Final income depends on success of investment  Defined Benefit Plan Promises to pay fixed amount as retirement income Based on employees last salary

11. Paid Time Off  As per legal requirements of Pakistan, employer should give 14 Annual / Earned 10 Casual 8 Sick  All these leaves are fully paid  Some companies give LFA (Leaves Fare Assistance) as well  Expats are also given all expenses paid return trips with family back to their hometown  Any leaves earned not availed in a given year is either carry forwarded to next year or encashed

12. Profit Sharing Plan  As per labor laws of Pakistan every employee is entitled to 10-C Bonus (5% of the profitability of the company)  Production & Profitability bonuses  Employee Share Option Scheme (ESOS) Employees are entitled for company’s shares which matures after a specific time period Employees are given shares on subsidized rates to be paid in installments over a period of time.

13. Position Specific Benefits  Car (Company Maintained)  Fuel  Club Membership  Children Education  Mobile Phone / Blackberry  Laptop & Internet Services

14. Flexible Working Schedule  Flexible working schedule Flexible coming and going timings with minimum and maximum limits Limit of total working hours per week is fixed  Flexible workplace Can work from anywhere Wireless office connectivity given Compulsory to attend meetings Work is done according to objectives and their deadlines need to be met

15. Employee Services  Financial, Legal and Psychological counseling  Tax preparation & filing  Education Subsidies  Child Care Centers  Adult/Spouse care leaves  Subsidized / Free food services  Physical Fitness opportunities  Social & recreational activities  Parking Charges  Transportation to and from work  Relocation Expenses  Emergency Loans  Housing Colonies  On-Site Health Services

16. Thank You