Please be clear that there are two types of benefits to which an employee is entitled: statutory and non-statutory. Statutory means what you are legally obliged to provide to an employee. Non-statutory means what you have agreed to provide by way of a contract of service, although there is no legal obligation to provide the same. PF is a statutory provision, while medical allowance is a non-statutory provision.
The employer is supposed to extend benefits like P.F., Gratuity, Leave with wages, annual bonus, sickness benefit, maternity benefit, etc., under the ESIC Act. You must examine the applicability of different Acts and statutory provisions with reference to your establishment for extending the statutory benefits. As regards non-statutory benefits like medical allowance, LTC, vehicle allowance, etc., please find out what benefits your organization has agreed to extend to employees by way of a contract of service. The same must be extended.
It is always wise for the HR man to get information on the practices being followed in other establishments in the region and industry. This information helps in policy formulations.
The HR man has to be careful not to be hasty in extending any non-statutory benefit as once given, it becomes very difficult to withdraw.
Hope these guidelines will be useful.
Cyril