The employee-employer relationship is more than just paychecks and completing workflows. Employee benefit programs are a crucial way for employers to show appreciation for your hard work and contribution to a company's success. They also tend to bolster relationships and bonds between employees and employers, making the former feel appreciated.
However, many workers are oblivious to the fact that some benefit programs are in fact rights and entitlements. Others, on the other hand, cannot entirely identify what benefits are due to them. In this article, we highlight five employee benefit options to look out for and perhaps help you evaluate your organization’s work culture.
What are Employee Benefit Programs?
Employee compensations or benefit programs are a variety of packages that employees enjoy for working with an organization. They also serve as incentives and side attractions to win the favor of and retain skilled workers. Companies with hefty benefits packages tend to stand out in a competitive job market.
While these might appear like privileges, many employee benefit programs are legal and mandatory, often attracting penalties when they are violated. For example, it is mandatory and a right to receive contributory pension benefits as an employee in Nigeria.
Types of Employee Benefit Programs
Retirement Insurance
As you work hard and do your best at your job, it is equally important that you secure your retirement with a pension fund. Now, pension or retirement benefits are mandatory in Nigeria, and the Pencom Reform Act 2014 has made it so.
According to this act, employers and employees contribute a portion of the employee’s salary towards a retirement fund. This is known as the Contributory Pension Scheme.
The contributory pension scheme entails employers contributing 10% of your monthly salary and the employee contributing 8%, amounting to 18%. This fund is further remitted to your Pension Fund Administrator (PFA) within 7 working days after your salary has been paid and necessary deductions have been made.
Salary and Compensation
This is the norm and the most basic right for all employees. It is non-negotiable to get paid for the work you have put into your company or organization. And depending on your role, your salary may come with bonuses and commissions as specified in your contract.
Paid Leave
As stipulated by the Nigerian Labor Act, you are eligible for at least 6 days of leave after working with a company for 12 months. There are three major kinds of leave in Nigeria, excluding public holidays and national days, and these are:
Annual Leave: Time off work for vacation and relaxation.
Sick Leave: At least 6 days off when an employee is ill.
Maternity or Paternity Leave: Leave for new parents to care for their newborns.
However, many employees tend to forget that during your leave, it is expected that you will still get paid. This is why they are called statutory leaves, and it is a benefit for every worker. As a matter of fact, many employers pay an annual leave allowance even though the Labor Act doesn’t make it compulsory.
Health Insurance
Access to health insurance is another one of the core employee benefit programs in Nigeria. In May 2022, the federal government, under the administration of President Muhammadu Buhari, signed the National Health Insurance Authority Bill 2021.
This legislation aims to provide health insurance coverage for all Nigerians, including medical expenses for employees and their dependents. In case you break down while working with an organization, you should receive free or subsidized care on hospital stays, doctor visits, surgeries, and prescriptions.
Allowances
Your employee benefit allows for other allowances aside from your basic salary. An employer may provide domestic and welfare allowances like housing, transportation, or internet allowances, as the case may be. On many occasions, there may also be some form of performance allowance to thank you for doing exceedingly well and above your KPIs.
Conclusion
The Nigerian workforce plays a major role in making businesses successful, and it is only ideal that employees understand and take advantage of their compensation. According to renowned magnate Richard Branson,
“Clients do not come first. Employees come first. If you take care of your employees, they will take care of the clients.”
Oak Pensions is committed to helping you maximize your retirement insurance benefits by providing the assistance you need to secure your future. To learn more about how your pension benefits work, contact the Oak Pensions team via info@oakpensions.com or call 09087448661.
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