What are the Different Types of Employment Benefits?

There are a number of benefits available to the employees and former employees of a business, depending on the region and company. Common and sometimes legally required employment benefits include leave benefits, health benefits, and unemployment benefits. Leave benefits are sick days, vacation days, and other paid and unpaid days an employee takes off work. Health benefits are usually contracted through a health insurance company and might be available in addition to life insurance and other types of insurance. Lastly, unemployment benefits are what the employee receives if he or she is fired or laid off.

Leave benefits are often employment benefits required by law, and they let the employee take a number of days off per year. This number and whether the leave days are paid for depend on local laws, though a company might offer an employee extra leave days. Normally, an employee has a certain number of leave days that are paid and a certain number that are unpaid. Some countries have laws that require employers to give a large amount of leave days compared to most other countries.

Depending on the country, health benefits can be a major benefit of being employed. Some employers offer better health benefits than others, sometimes making the job highly sought after. Occasionally, people get certain jobs solely for the health insurance that an employer offers for the employee, the employee’s immediate family, or both. Still other employers offer little to no health benefits because health care is paid for by the government, because they do not want the extra expense, or for other reasons.

Similar to health insurance offered by employers, life insurance, dental insurance, and vision insurance might also be available employment benefits. Sometimes the latter two are not covered under a health insurance plan or are covered in a very limited manner, in which case they can be purchased separately to provide fuller overall health insurance. These types of insurance usually do not influence a potential employee’s decision on whether to join a company, but many people acquire them because of their low price.

Lastly, unemployment benefits are beneficial if an employee is fired or laid off due to company cutbacks. These employment benefits are normally provided by the local government and are commonly given in the form of a monthly check that is a percentage of what the former employee earned at his or her work each month. Sometimes unemployment benefits include rent assistance and job placement, among other things related to supporting the former employee and finding him or her a new job.