Here are 10 forms of employee fringe benefits that you can find in companies in Indonesia so you can find the best compensation to make your employees happy!
Fringe employee benefit is a service program that gives company employees a bonus or additional compensation to ensure their welfare.
Companies usually provide employee fringe benefits in two forms, namely financial or non-financial. Some of them are given to employees in certain positions or statuses.
The application of employee fringe benefits in a good company can provide benefits to both parties, namely employees and the company. Employees feel valued and appreciated because their hard work is valued highly, and their welfare is well cared for by the company.
Read Also : EBIT and EBITDA: Definition, How to Calculate, and Difference
On the other hand, a company that can make all of its employees happy can run its business effectively due to high levels of employee motivation and productivity , improving company image , reducing turnover , and increasing employee loyalty.
Forms of Employee Benefit Fringe
The implementation of employee fringe benefits in Indonesia cannot be separated from the goal of wanting to make employees happy and appreciative. In Indonesia, the application of employee fringe benefits is divided into two, namely fringe benefits whose implementation has been regulated by the government and fringe benefits whose provision is in accordance with the policies of each company.
Therefore, the following are forms of employee fringe benefits that you can find in companies in Indonesia.
1. BPJS of Employment
This form of benefit is one of the fringe benefits that must be given to employees. In accordance with Law No. 24 of 2011 Article 15 paragraph (2) which explains that companies are obliged to compulsorily include their employees.
The function of this benefit is to provide protection from unexpected events in the field such as work accidents, retirement, or death.
In its implementation, there are four programs contained in Employment BPJS:
- Work Accident Insurance, serves to protect employees while on assignment or working with a contribution rate of between 0.24% to 1.74%.
- Old Age Security, such as a savings system and the company pays 3.7% of the total dues.
- Death Benefit, the heirs of company employees receive compensation of 21 million (compensation of 14 million, funeral expenses of 2 million, and periodic compensation).
- Pension Guarantee, protection for employees who are entering retirement age
2. BPJS Kesehatan
This form of fringe benefit must also be given to all company employees. BPJS Health has the same system as health insurance provided to employees.
This employee benefit fringe provides access to employees who have problems with their health that interfere with their productivity at work.
According to the policies stated in the Law, the allowances that must be given to employees amount to 5% of the total employee salary every month.
3. Paid leave
Leave is a right that must be given by the company to employees on a regular basis every year. This policy has been regulated in Article 79 of the Job Creation Law which provides for 12-14 days of leave each year apart from national holidays.
This leave allowance is given to employees who have worked for the company for a minimum of 12 months or 1 year, and the leave allowance cannot be taken all at once unless the company allows it.
Those are some employee fringe benefits that have been regulated by the government in the law.
Furthermore, there are forms of employee fringe benefits , the distribution of which is regulated by each company’s policy. The benefits are as follows:
Read Also : How to Start an Employee Wellness Program for Employees
4. Holiday Allowance or THR
As the name suggests, this allowance is given by the company just before the holidays. Basically, this allowance has been regulated by the government. However, the nominal amount given to employees varies depending on the policies implemented by each company.
5. Meal allowance
The provision of meal allowance benefits is quite flexible in every company. In some companies there are those who give it as a cash bonus outside of salary, and in others it is given non-financially by providing food sources directly or working with food vendors.
6. Accommodation and Transportation
Employees get accommodation and transportation allowances regularly every month. Transportation allowances can help employees to more effectively and easily get to the office or important meeting places with clients.
Usually employees get a transportation allowance quota that varies depending on the division where the employee is located and the policies contained in the company.
Like employees from the Sales and Operations division who can move from one place to another every day.
Companies usually use a reimbursement method that is collected every weekend or month. Currently, many companies also provide it through various vouchers or e-tickets from collaboration with online transportation service companies.
Read Also : 4 Ways to Improve Employee Wellbeing
7. Credit and Internet
Companies that carry out a hybrid work or work from home policy usually provide benefits in the form of assistance for employee credit and internet quota fees. This benefit is important because employees need internet access in their daily work activities, such as for online attendance , communicating with colleagues, or conducting online meetings with company clients.
The amount of financing dependents varies depending on company policy, position, and work division. There are those who provide a vulnerable fee of 150 thousand and there are companies that are able to cover up to 500 thousand each month.
8. Positional allowance
Position allowances are usually only given to employees with certain positions within the company structure. This relates to the positions and responsibilities they hold. The higher and heavier the workload, the greater the bonus allowance.
The forms of job allowances are quite diverse, there are companies that give them in the form of year-end bonuses, bonuses within a certain period of time, or in the form of goods such as housing or transportation.
9. Employee Family Allowance
Employees must meet certain qualifications or statuses to receive this compensation.
Benefits for wives are given only to employees who are married and the wife is not working. Maximum child allowance is only given to three children in one family and is limited to 21 years of age.
Read Also : What is the Big Four? Companies Targeted by Bachelor of Accounting
10. Fitness Facility
Company employees, to be exact, usually work by sitting in front of a laptop screen for 8 hours straight and not moving too much. If it is continued, it is not surprising if the disease will come to you.
Therefore, companies usually provide fitness facilities so that their employees stay healthy and fit so they can work productively. Employees are also healthier and are rarely absent due to illness.
To meet this need, companies usually open sports facilities in their offices so that employees get free access, or employees get free membership vouchers to the nearest GYM.