Following are my thoughts on Health Insurance and Perks:
Regarding health insurance, the government has directed all employers to ensure their employees are covered either under ESIC, as per their individual eligibility or under Company sponsored health insurance coverage. This is very important owing to the ongoing pandemic in the country.
ESIC scheme is generous enough to cover all family members of the employee including spouse, upto 2 children, parents, unemployed brothers and unmarried sisters. The insured person can continue to avail the benefits even after retirement upon payment of a very nominal annual fee.
The Company sponsored health schemes may not be that generous owing to costs. At a minimum, the employee and immediate family members such as spouse and children would be covered upto an individual capped limit, in addition to a family floater limit. The employee would be given an option to cover their parents or any of their family members on a cost sharing basis or for any top-up of coverage amount. However, the coverage is limited only until the validity of the employee’s employment with the organisation and ceases immediately thereafter.
With regards to Perquisites , certain categories of employees in an organisation are eligible for additional benefits, apart from the cash components. These could be leased house or a car or driver or gardener or watchman, etc which are treated as essentials & as a part of the employee contract and also as retention tool. These are treated as taxable income in the hands of the employee as they are provided & paid to by the company on behalf of the employee. As we all are aware, any cash or kind provided to an employee by an organisation as a part of C&B is treated as taxable income. Each item has a different rate or method of perk valuation and is included in the taxable income.