How Can Employee Welfare Schemes Benefit Both Staff and the Organization?

Inquiry About Employee Welfare Schemes

I want to know more about welfare schemes for employees that will be beneficial to both the employees and the organization.

Regards,
Pooja

Dear Seniors, please suggest a worthwhile employee welfare scheme.

Regards,
Pooja

Pooja, can you be a little more specific? The topic of welfare schemes is vast. It fills up whole books, so you have to be a little more specific about what you need to know. Incidentally, I hope you have done a "Research" using the options on this site. There is already a lot of information on welfare schemes on citehr. Check out this link: employees welfare scheme. If you are more specific, members on this forum will give you a more effective answer.

As there are a number of welfare schemes, it is better if you ask for specifics. However, I am listing below some of the schemes:

1. Medical Benefit
2. Common Transport
3. Canteen Facility
4. Family Planning Incentive
5. Birthday Gifts
6. Production Incentive
7. Holiday Package for completing 5 years of successful service
8. Household articles such as TV, Refrigerator, Grinders, Sofas, furniture, etc., are provided if the employee stays continuously for 5 years. Moreover, after receiving the articles, the employee should stay for an additional 5 years. If the employee leaves the company, there will be a proportional deduction like 1/5, 2/5, 3/5, 4/5.

I hope this information is helpful.

Thank you.

Just to be clear, in case a worker has been given a TV and leaves within 5 years, do you want a proportionate deduction as recovery from him? Would it be 1/5th of the cost for the first year or 4/5 of the cost?

Also, generally, this would cost more than a month's salary (or am I looking at urban prices and a factory worker is happy with a lower-cost TV). If he leaves without notice, how much can you deduct from his salary (without running afoul of POWA, etc)? You cannot deduct against his PF or Gratuity. Can you deduct against his retrenchment compensation? Is that allowed? If you can only deduct against outstanding salary, will that be enough?

(Note, I am asking these questions because I don't know the answer. They are not questioning your suggestion of giving household items as welfare/benefits).

Thanks to my seniors' guidance, I wanted to ask you about one of the welfare schemes that provide education loans to employees' children. Could you please tell me how we can offer education loans to employees and at what percentage, ensuring it is beneficial for both the employees and the employer?

Regards,
Pooja

Further to the comments and suggestions of other members, please provide more details about your organization—such as the sector, employee strength, and location(s). The more information you provide, the better and more focused the responses will be.

As other members have suggested, first conduct research in this forum. You began this thread by asking a general query about welfare schemes and are now inquiring about an education loan scheme—perhaps you could have asked this initially. Do you already have one in place, or are you looking to introduce it in your company?

Regards,
TS

It's good that you started thinking of welfare schemes for your colleagues. Specifically regarding education loans for your employees' children, I have some suggestions:

I'm not sure about the financial standing of your employer. If you can afford it, loans for diploma/degree and higher courses can be interest-free or offered as soft loans with nominal interest, repayable in EMIs starting when the children are employed. To ensure regular repayment, suitable conditions could be included in the Terms & Conditions, backed by certain securities.

1. If all of you are covered under EPF, the scheme itself provides for a partial withdrawal (non-refundable) up to a certain limit for their wards' education.

2. Almost all banks offer education loans for all courses from PUC and above, including courses abroad. Sometimes, applicants may face hurdles meeting the banks' requirements, which could be overcome if the employer acts as a guarantor appropriately. After all, banks are commercial entities, and their primary goal is to keep NPAs within acceptable limits, so the employer should facilitate quick loan approvals.

3. Employee Unions and Co-op societies also provide education loans from their funds, particularly for books, hostel fees, etc.

4. Employers can create schemes or partnerships with educational institutions to secure free seats for deserving wards/toppers by planning mutual benefits such as providing internships, free training, etc.

And you can continue with ideas like these.

Regards