Employee benefits can either be non-financial or financial compensation provided to an employee as part of the employment contract. Employee benefits may be required by law (depending on the risk associated with the job or industry and the laws of the country where the job is held) or provided voluntarily by the employer.
Many small-business owners mistakenly believe they cannot afford to offer benefits. From an employee’s point of view, a good package of benefits increases the value they receive from their working life and contribute to their own health and that of their family. From an employer’s point of view, benefits help staff remain happy and committed, reducing the chance of them leaving to work elsewhere.
The assets that accumulate within the provident or pension fund are invested into underlying investment fund/s. These investment funds will ultimately determine how well your provident or pension funds perform over time. So, it’s critical to ensure that your underlying mix of investment funds is appropriately aligned to your overall investment goals. Certain funds allow you to choose how your contributions are invested. If your fund offers you a choice, consult your financial planner to ensure you that you choose the correct mix.
The interest within your provident or pension fund is protected against insolvency and creditors.
All dividends, interest and capital growth are not taxed within a provident or pension fund.
Provident and pension funds need to comply with regulation 28 of the Pension Fund Act. This Act directs the manager in which provident and pensions funds can invest in particular assets. The main purpose behind this legislation is to protect your investment interests from poorly devised investment portfolios.
The main difference between these retirement funds is how you receive your fund benefit at retirement.
As a member of a pension fund, you may elect to receive up to a third of your retirement benefit as a cash lump sum, with the remaining two-thirds being paid monthly. This monthly income will be taxed at your average rate of taxation in retirement. If no cash lump sum is taken, your full benefit will be paid monthly, resulting in a higher pension.
As a member of a provident fund, you can choose to take your entire retirement benefit as a lump sum. A portion of this may be tax-free, but you will be taxed on the portion that is not exempt.
Group life insurance is a type of life insurance in which a single contract covers an entire group of people. Typically, the policy owner is an employer or an entity such as a labor organization, and the policy covers the employees or members of the group... Term insurance is the most common form of group life insurance
Disability insurance provides you with a lump sum financial compensation if you are disabled by an accident or illness and unable to work. It covers more than just serious illnesses and helps you replace at least part of your income when you are at your most vulnerable.
An Income Protection benefit provides you with an income when you are unable to work due to a sickness or injury. This benefit can be paid if you are totally disabled (and unable to work at all for medical reasons) or if you are partially disabled and can work, but in a limited capacity due to your sickness or injury.
A disease with a significant impact on lifestyle (e.g., multiple sclerosis), longevity (e.g., AIDS, cancer), which incurs high costs (e.g., extensive burns, persistent vegetative state), and/or causes significant and permanent residual morbidity (e.g., loss of eyes or limbs).
Dread disease cover, also known as critical illness cover, gives the insured financial protection should you fall victim to a serious illness like cancer or a heart attack.
You need Dread Disease Cover if you do not want to have to worry about money when you are seriously ill.
Group scheme funeral cover is ideal for employers who would like to offer comprehensive coverage to their employees during their time of need. A group funeral plan is an affordable way of ensuring that your workers' families will not be stressed during their time of difficulty and need.