Employee Benefits
Companies offer employee benefits to attract, retain, and support their workforce, recognizing that a happy and healthy employee is a productive and engaged one. These benefits, such as health insurance, retirement plans, paid time off, and wellness programs, demonstrate a company's investment in its employees' overall well-being and financial security.
It is essential for employees to understand and make use of these benefits, as they can significantly impact their quality of life, financial stability, and job satisfaction. By taking advantage of employee benefits, individuals can reduce stress, improve their physical and mental health, and achieve a better work-life balance.
Moreover, understanding and utilizing employee benefits can also lead to increased loyalty, motivation, and productivity, ultimately benefiting both the employee and the organization.
Benefits
Pension Fund | Provident Fund
Your employer might have a provident or pension fund in place. Some employers contribute to these funds while in some instances, the employee is the sole contributor. You are entitled to a statement showing you how much you have in these funds and how they have performed. Both pension and provident funds can be terminated by retirement or resignation.
The key difference between a provident and a pension fund is that at termination you can only withdraw a 1/3 of the total benefit from the pension fund, and the balance you receive monthly as an annuity. With the provident fund, you can withdraw the full benefit amount, subject to tax.
Medical Aid
Your employer might contribute towards your medical aid costs.
Funeral
This is also only available to your beneficiaries in the event of your death.
Check with your HR or your employee benefits brochure to see the cover amount.
Only the following will be covered:
- Your spouse – If you are married.
- Your children
Understand the Employee Benefits your company offers you
Understand the Employee Benefits your company offers you
Your benefits package provides holistic financial and health support for you and your entire family. It’s not limited only to the workplace. Typically, an employer makes available employee benefits which include a retirement fund, insured group risk and healthcare benefits, with additional advice and assistance within the workplace to balance your short-term needs and long-term objectives.
Read the IOL article HERE
The Future of Employee Benefits in South Africa
Over the past few decades, the industry has seen a significant shift from defined benefit (DB) to defined contribution (DC) funds. In the former, the employer bears the risk of worse-than-expected investment returns or higher-than-expected expenses. In the latter, these risks (and the corresponding benefit of favourable returns) are, in effect, transferred to the individual fund member.
Read the Old Mutual article HERE