Employee benefits typically refer to retirement plans, health insurance, life insurance, disability insurance. Individual benefits are increasingly expensive for businesses to provide to employees, so the range and options of benefits are changing rapidly to include, for example, flexible benefit, group risk, group pension, group health.
Employee benefits are the extras or perks a person receives from his employer. Some types of employee benefits are required by law while others are optional. The list of legally required employee benefits varies from place to place.
Group risk benefits are designed to protect and insure employees and their families in the event of long-term illness or death while working for an organization. Next to the pension, group risk benefits such as life assurance, group accident insurance, income protection, and group critical illness are the backbone of the staff benefits package. These company perks protect and insure employees in the event of long-term illness or death. They can also be used to rehabilitate staff that are off work on long term sickness absence due to stress, an accident or other illness.
Group risk benefits, especially critical illness and life insurance, can also be extended to employee family members as well as the employee. This makes the benefit even more attractive and even more valuable to both the employer and employee.
This is a company funded retirement scheme which is based on a defined contribution basis of which the employee will pay a portion and their company will contribute a portion on behalf of the employee. The portion paid by the employee is tax deductible by up to 7.5% of what is known as retirement funding income, which is the percentage of your salary that is allocated as calculating your pension fund contribution.
The pension fund will have its own rules, which vary from company to company. The important consideration to make is that the fund rules will have a retirement age, at which you will have access to the accumulated pension funds, with certain limitations on the methods on accessing the fund.
This type of fund serves the same purpose as the pension fund but is quite different in that you are not able to deduct any contributions from your taxable income and there are no limitations as to the age that you have to be to be able to access your accumulated investment value. There are no other limitations on how you may withdraw, except for the tax that you will need to pay on the withdrawal.
This type of vehicle is more appropriate for an employee that is in South Africa on a temporary basis. However, there are still potentially some better and more appropriate options that will attract less tax on withdrawal. Again it will be prudent to consider these options before agreeing on a package
Medical aid is a form of health insurance cover which pays for essential medical services to registered practitioners, health facilities, clinics and hospitals. This form of private health cover varies from country to country but in South Africa, it is structured as a product referred to as a medical aid. It may provide cover for an individual, couple or family and will protect the member and dependents from the financial impact of private health care costs.
The benefits of a medical aid can be best appreciated when you need it most.
So how do you choose a medical scheme or hospital plan, a specific option of the scheme, which benefits to include or exclude? In this ever-changing environment, you need the services and advice of an independent intermediary. Someone who doesn’t only have the interests of a specific medical scheme at heart, but one who can guide you to ensure your needs are met.
An organization specializing in the healthcare industry and will assist you with:
At Edge, we do not underestimate the power of vision. We believe that one of our greatest achievements lies in the Quality of our Service. Our motto is "Keeping the end in mind", this does not only apply to our investment principles and future planning principles, but also to our principles regarding service, and what we can uniquely offer our clients.