Principles of Risk Management and Insurance, 13th Edition

Meaning of Employee Benefits

Employee benefits are employer-sponsored benefits, other than wages, that enhance the economic security of individuals and families and are partly or fully paid for by employers. These benefits include group life insurance, group medical expense and dental insurance plans, group short-term and long-term disability plans, paid holidays and vacations, paid family and medical leaves, wellness programs, employee assistance programs, educational assistance, employee discounts, and numerous other benefits. Employee benefits also include the employer contributions to Social Security and Medicare, state unemployment compensation programs, workers’ compensation, and temporary disability insurance. However, it is beyond the ...