Employee Benefits Administration

Meaning & Definition

The employee benefits administration describes how an employer creates and enables the implementation of its various employee benefit programs. Various forms of employee benefits include health care coverage, our company’s pension plan, salary continuance after termination and permanent disability due to age-related conditions, personal use of vehicles or material goods, and commuter benefit programs and payments.

Important aspects of Employee Benefits Administration

• Create satisfaction among employees, leading to employee retention.
• Ensure compliance with regulations that prevent legal penalties.
• Build a brand as an employer.
• Guarantee financially secure and healthy employees.
• Increase revenues through greater employee engagement and productivity.

Compliance & Policy Considerations 

Employee benefits administration must align with:

• Employees’ Provident Funds and Miscellaneous Provisions Act, 1952
• Employees’ State Insurance Act, 1948
• Payment of Gratuity Act, 1972
• Maternity Benefit Act, 1961
• Income Tax Act, 1961

Complying with these laws helps to ensure the proper amount of deductions, contributions and reporting to the employee for their entitlements.