Question

Human Resources Management

Q: List four types of statutory benefits

Answer 1

The statutory benefits include Social Security, Unemployment Compensation,Workers’ Compensation and Statutory Disability

Social security

• It is useful for the employees, which gained the importance in industrialized countries.
• It provides the protection for the employees against the contingencies like- resignation,retirement,maternity benefits,retrenchments,old age,paternity leave,death,unemployment,disablement and other similar kind of situations
• Most of these benefits are financed by the payroll taxes
• The Social security includes, Retirement insurance, Disability insurance, medicare, survivor's insurance, supplemental security income etc.
• These benefits are adjusted when the rules and regulations changes- people should contact the nearest social security office in order to get the latest information about the benefits which is suitable for them to claim

Unemployment Compensation

• An individual may be able to receive the unemployment compensation benefits if they lose job not because of their mistake.
• In USA if an individual laid off by the organization which is covered by the social security at then , then the person may be able to get Unemployment compensation up to 26 weeks
• The federal government provides the certain guidelines to claim this benefits .These benefits may vary state by state.

Workers Compensation

• It provides the benefit for the employee who injured during the job
• This compensation is based on the payroll and job classification of the employees
• Workmen's compensation Act.1923 - this includes safety , health measures and the provision of the compensation. This Act covers the employees who's salary is less than 500 per month.
• The amount of the compensation depends on the nature of the injury and monthly salary of the employee.
• in case of the death of the employee, his/her dependents are eligible for the compensation

Statutory Disability

• it provides the income replacement the employee who are suffered from an accident or illness at their job.
• In New Jersey employee contributes 0.5 percent of employees’ wages during 2016. later contributing for the three years, an employer becomes eligible for rating ranging from 0.1 to 1.1 percent- that depends on the employer’s contribution and the balance in the state fund and benefit history.