Employer – Employee Scheme
This scheme is easy to plan for and very effective for businesses. It is meant for top performers in a company, including owners and directors. It aims at providing long term benefits to the company and the employees.
What is employer-employee scheme?
Life Insurance policy purchased by an employer on the life of its employee/s as a welfare scheme is known as employer employee scheme (EES).
Arrangement is based on the principle of insurable interest which an employer has on its employees.
Both the employee and the employer are benefited.
How does this benefit the company?
Gains employee loyalty & boosts employee morale.
Enhances employee retention, and promotes employee engagement.
Tax benefit as premiums are treated as expense under Section 37 (1).
Saves cost of hiring and training new employees.
Tax benefits are subject to changes in the tax laws,
please consult your tax advisor for details.
What benefits would the employee receive?
Sense of financial security and performance reward.
Financial Security for the dependents.
Build retirement corpus.
Additional service benefit.