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Employee Welfare

What is Employee Welfare?

Employee welfare, also known as staff welfare, refers to the services and benefits provided by an employer for well-being of employees. It includes healthcare, paid time off, and amenities. These services extend from physical to mental health among employees, helping create an efficient and satisfied workforce. The main objective of employee welfare is to improve employee morale, develop a better image of the company, develop efficiency, and create a satisfied workforce.

Staff welfare is one of the critical factors of employee retention. The higher the salary for a position, the higher the costs to rehire and retrain a new employee. There is also a correlation between employee welfare and higher productivity. For example, Google discovered this correlation and provided numerous perks, taking a lead on its competitors.

What are the key features of employee welfare?

Employee welfare covers anything that is done for the well-being, comfort, and improvement of employees – whether in terms of social or intellectual. The productivity of employees depends on the environment of the organization and the welfare measures undertaken. Some key features of employee welfare are:

  1. It is dynamic in nature and varies from region to region.
  2. It is flexible as new welfare measures are added from time to time.
  3. It may be introduced by the company, charitable organizations, government, and employees.
  4. These measures improve the physical, intellectual, and moral wellness of employees.
  5. It is a continuous process.
  6. It includes anything that is done over and above the wages paid, for the betterment of employees.

What are the types of employee welfare?

Employee welfare can be divided into two:

1. Statutory

In case of statutory, the employee welfare services are introduced by the government. It sets a minimum standard for safety and well-being for employees at the workplace, in terms of first-aid, hours of work, hygiene, sanitation, etc.

2. Voluntary

Voluntary employee welfare refers to the amenities provided by the organization besides the statutory obligations. These include transport, medical treatment, free meals, schooling facility for children, sports, games, and many more.

What are the benefits of employee welfare?

Employee welfare services are beneficial to both employees and employers. For employees, they become mentally and physically fit to perform their best at work. They can share additional responsibilities and improve their standard of living. In fact, they would be thriving in a healthy work environment. For employers, they can see an improvement in efficiency and productivity of employees. There will also be a development in the attachment and belongingness of employees to the organization. This promotes healthy industrial relations, ultimately achieving industrial peace. It also enhances goodwill, reputation, and culture of the organization.

What should be included in employee welfare programs?

Employee welfare programs are benefits and services that help employees in their physical and mental needs. While some may include health benefits, other companies may include stipends or provisions. An employee welfare program should include:


An employee welfare program includes physical and mental health benefits. This could include wellness sessions, meditation, yoga, and so on.

Government schemes

Apart from the benefits provided by the company, there are a few government schemes initiated in employee welfare programs. For example, vocational training, maternity benefit, gratuity, provident fund, ESI (Employee State Insurance), and so on.


Employee welfare programs should have the right tools, equipment, materials, and services to ensure safety in the workplace.

What are some examples of employee welfare policies?

An employee welfare policy discusses the purpose, applicability, and scope of employee welfare initiatives. It also includes the initiatives undertaken by the company to promote employee well-being. Some examples of employee welfare policies are:

  • Sick leave policy
  • Insurance policy
  • Healthcare policy
  • Skill development policy
  • Employee wellness policy
  • Childcare policy
  • Flexible work arrangement policy
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