Accommodation & relocation for a new joinee - What are components should get covered?

I want to know about accommodation and relocation for a new joiner. How does the process generally work? What do we have to provide to a joiner? Which components should be covered?

Accommodation policy depends on whether you have company accommodation which is to be allotted to employees, or you have a policy of the company taking on lease the locally available accommodation for housing purposes of the employees. In either case, you have to frame parameters for entitlement, the eligible amount of rent for leasing, the limits of house rent deduction, action to be taken in case of termination of service, etc.

Similarly, relocation is a voluntary welfare initiative of the company to render assistance to an employee to help them relocate to a new place of employment. You will have to frame the detailed rules and regulations of entitlement and the quantum of benefit for each category of employee.

Adding to what KK!HR said above, most of the companies pay relocation allowance as well.

Accommodation: The accommodation helps the new joiners to look out for a suitable home, and this would normally be 1 - 2 weeks. I guess your company doesn't have a guest house now. So, find a nearby high standard hotel where the new joiners can come and stay. If you foresee that the headcount will grow with diversity (people from various locations), make a deal with the hotel to get the best price. Ensure that food and accommodation are of quality. You can decide on what you want to offer as part of the accommodation in the hotel (a bottle of water, breakfast, lunch, and dinner).

Relocation Allowance: As the candidate has to relocate (to a different state) from one place to another, he/she may need to transfer with family or even with basic home appliances. To compensate for that, companies would normally pay a relocation allowance (varies from 10K - 50K) based on the location (state) and candidate's level. If a candidate leaves the organization within 1 year, the candidate has to repay the allowance, and this clause has to be included in the contract.