What is a benefits package? | Meaning and Definition | Akrivia HCM

Benefits packages are the non-wage compensation given to the employee in addition to the employee’s salary. Companies typically provide benefits to their employees in the form of paid time off, retirement, health, life and disability insurance.


Different types of benefits packages companies offer to their employees are :


Life insurance

An organization provides a death benefit to their employees’ designated beneficiaries if they die while working for the company. The payout is usually paid to their spouse, children or other close relatives. Many businesses combine accidental death and dismemberment with life insurance policies to pay out beneficiaries.


Health insurance

Health insurance is a comprehensive benefits package that offers employees access to doctors and hospitals specializing in treating their medical conditions so they can receive top-quality medical care at an affordable cost.


Disability insurance

Disability insurance is an insurance policy that provides income for a debilitating injury, illness, or death. It has divided into two types: short-term and long-term. Short-term disability benefits pay you a percentage of your regular salary for a specified period if you cannot work due to a short-term illness or injury that lasts 12 weeks or less. On the other hand, Long-term disability provides an income if you cannot perform your job responsibilities for an extended period of time due to illness.


Paid time off

Paid time off is a crucial benefit that employers offer to their employees. It may include sick, personal, or vacation days without any need for explanation. Some employers also provide vacation time for their employees without any need for explanation. Paid time off includes bereavement and funeral leave as needed by the employee.

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