Employee Welfare in India: Definition, Programmes and Benefits

Employee welfare isn’t a nice idea; it’s a key strategy that drives your organisation. Welfare programs combine mandatory and optional efforts to support employees. They focus on physical, emotional, and social well-being. These programs have a direct impact on morale, productivity, and retention.

In India, absenteeism in manufacturing is about 11%. Mental health issues cost employers around $14 billion each year (Deloitte). We need strong welfare systems without delay. Forward-thinking companies are going beyond compliance.

They offer flexible work policies, health insurance, and emotional support. This helps build trust, safety, and high performance. Now, 940 million Indians have some form of social protection (ILO, 2025). This shows a clear shift: employee well-being is essential. It’s what sets companies apart. Onsurity is changing the game by mixing modern wellness solutions with digital ease. This helps organisations of all sizes give care that is compassionate, measurable, strategic, and future-ready.

Types of Employee Welfare Programmes

In India, employee welfare initiatives fall into two categories: statutory and non-statutory. They are the twin engines of an organisation’s care ecosystem. One engine makes sure the organisation follows the law. The other builds trust, culture, and sets the organisation apart.

Statutory Welfare Programmes

Statutory welfare programs are required by law. Employers must follow various labor laws. These include the Factories Act of 1948, the Employees’ State Insurance (ESI) Act, and the Employees’ Provident Funds (EPF) Act. These are non-negotiables. They guarantee workers in India safety, financial security, and dignity across different sectors.

Examples of statutory employee welfare measures include:

• Provident Fund (PF): A retirement benefit in which both the employer and employee contribute monthly.
• Employees’ State Insurance (ESI) is a social security program: It provides medical and disability coverage for workers who earn below a set wage limit.
  
• Gratuity: A lump-sum payment made to employees who have rendered continuous service for at least five years.
• Maternity Benefits: Mandatory paid leave for expecting mothers under the Maternity Benefit Act.
• Occupational Safety Provisions: Health checkups are required. Workers need protective gear. Sanitation must be maintained, and hazards in the workplace should be reduced. This is all part of the Factories Act.

Stack Check: As of 2024, India’s Employees’ Provident Fund Organisation (EPFO) serves over 290 million members. The ESIC network has also expanded, reaching more than 83 million workers and their dependents. This shows how deeply welfare has reached the formal sector.

These frameworks ensure a foundational layer of protection. Today’s employees, especially after the pandemic, want more than just checkboxes. They expect complete care.

Non-Statutory Welfare Programmes

Non-statutory welfare programmes go beyond what’s legally required. These are optional steps taken by forward-thinking employers. They aim to improve employee well-being, loyalty, and performance.

They’re the difference between a workplace that’s legally compliant, and one that’s truly people-first.

Examples of non-statutory initiatives include:

• Group Health Insurance: Customised plans from providers such as Onsurity. These plans cover employees and their families with flexible premiums.
• Mental Health Support & EAPs: Access to confidential counseling, therapy sessions, and stress-management workshops.
• Work-from-home Policies & Flexi-hours: Especially critical in today’s hybrid work environment.
• Wellness Programs: These include fitness memberships, check-ups, yoga, and meditation sessions. Onsurity’s Wellness Wednesdays are a great example.
• Childcare and Education Assistance: Tuition reimbursement or on-site crèches.

Did you know?
A study by People Matters found that 74% of Indian employees prefer jobs with well-being benefits. They would choose this over a slightly higher salary without such perks.

Non-statutory measures are not about compliance, they’re about culture. They signal that the organisation doesn’t just manage people, but truly cares for them. And in a talent-driven economy, this care becomes your competitive moat.

Also, read: Monetary and Non-Monetary Benefits

Key Components of Employee Welfare Programmes

Effective employee welfare isn’t built on isolated perks, it’s a system of care. A well-structured programme blends physical safety, emotional stability, financial confidence, and cultural inclusion. Here are the five essential pillars:

1. Health and Safety

Health is no longer a benefit, it’s a baseline. Today’s workforce, especially post-COVID-19, sees health support as a clear sign of how much an organisation cares for its employees. Many businesses now choose group health insurance plans. These plans go beyond basic coverage like ESI. They often cover pre-existing conditions, dependents, and include wellness options.

Key inclusions:

• Regular medical check-ups and biometric screenings
• Group health insurance for employees and their dependents. Onsurity provides flexible plans for startups and small to medium-sized businesses.
• On-site medical facilities and first-aid stations
• Wellness activities, such as yoga, guided breath work, and meditation.
• Vaccination drives and preventive healthcare partnerships.

2. Work-Life Balance Initiatives

Burnout is the new pandemic. The modern employee isn’t seeking a pay cheque, they’re seeking space. Flexibility is no longer a luxury; it’s a retention strategy.

Effective work-life balance measures include:

• Remote and hybrid work options
• Parental and adoption leave
• Flexi-timing and compressed work weeks

No-meeting days and digital detox breaks

Did you know:
A detailed industry survey published in the International Journal of Research Publication and Reviews (March 2025) found that organisations offering robust work-life balance policies, like flexible hours and hybrid work, experienced up to 30% higher employee engagement and significantly lower turnover.

Integrating these policies lets employees be fully engaged, not just there. They foster autonomy, reduce emotional fatigue, and build deep trust.

3. Financial Security and Benefits

Financial anxiety is one of the leading causes of employee disengagement, organisations that support their people’s long-term financial health and build loyalty that money can’t buy.

Core financial welfare measures include:

• Provident Fund (PF) and gratuity contributions
• Medical reimbursement and Medi-claim policies
• Employee Stock Option Plans (ESOPs) for equity sharing.
• Referral incentives and performance bonuses
• Emergency medical funds or loan support

#Deloitte Pulse Report (2023): Over 61% of employees feel more committed to their jobs when offered financial planning resources or stability-related benefits.

Onsurity secret: Their monthly subscription helps startups provide great health and wellness coverage. This way, they avoid big upfront costs, keeping both employers and employees financially empowered.

4. Employee Help Programs (EAPs)

EAPs are mental health support systems that companies provide. They help employees deal with personal or work challenges.

A holistic EAP typically includes:

• Confidential counseling sessions
• Stress and trauma recovery workshops
• Support for grief, addiction, harassment, or burnout.
• Guidance on financial, legal, or family-related concerns.

India’s awareness of mental health is changing how EAPs are offered. Instead of just traditional helplines, there are now app-based tools, anonymous chat platforms, and digital workshops from Onsurity. These workshops, like Wellness Wednesdays, blend education with emotional intelligence.

5. Recreational and Social Welfare

Culture isn’t built in meetings, it’s built in shared moments. Recreational and social welfare initiatives connect people. They build a sense of belonging and joy. These are key factors for keeping people involved over time, but they are often overlooked.

Initiatives that make a difference:

• Canteen and dining subsidies
• Rest zones or nap rooms
• Team-building retreats and annual outings
• In-house events or club activities
• Scholarships or education support for employees’ children

Did you know?
A Hyderabad startup appointed Denver, a golden retriever, as Chief Happiness Officer, part of a wider trend showing office pets help lower anxiety and improve workplace morale. In a world that often moves too fast, these initiatives remind people that work can also be human.

Quick read: Why are Employee Welfare Programs Important in India?

Benefits of Employee Welfare to Organisations

Welfare is no longer an HR initiative, it’s a business strategy for organisations that make welfare a key part of their culture and benefit in many ways. These benefits spread through all departments, from attracting talent to improving profits. Here’s how:

1. Enhanced Employee Satisfaction and Motivation

When employees feel valued, they offer more than just their time. They invest their energy, focus, and loyalty too. Welfare initiatives show that employees are more than just resources. They are people with needs, dreams, and challenges.

2. Increased Productivity and Reduced Absenteeism

Employee welfare tackles the main reasons for disengagement: stress, burnout, health issues, and financial worries. By tackling these head-on, companies unlock performance.

Picture a workplace where fewer sick days mean being healthy enough to come in, not just pushing through illness.

3. Improved Talent Attraction and Retention

The job market has changed. Now, top talent looks beyond pay. They consider culture, care, and consciousness too.

Companies of all sizes, from small startups to big enterprises, benefit from structured welfare. These investments lead to higher offer acceptance rates and longer employee tenures.

Onsurity’s digital-first, zero-paperwork health and wellness model gives companies an edge in recruitment. This makes even small businesses seem like premium employers.

4. Stronger Industrial Relations and Reduced Labour Disputes

Trust isn’t built during crises, it’s built before them. A proactive welfare culture becomes your strongest insurance during conflict or change.

When employees feel heard, helped, and protected, they’re more likely to work together. This leads to collaboration instead of confrontation when facing challenges.

Welfare promotes relational equity. This is the quiet force that maintains culture during leadership changes, strategy shifts, or difficult times.

Welfare isn’t an expense, it’s a multiplier.

As Richard Branson puts it: “Take care of your employees, and they’ll take care of your business.”

Now let’s explore how Onsurity is building the future of employee welfare, one digital solution at a time.

Suggested read: A Comprehensive Guide to Employee Wellbeing

How Onsurity Enables Employee Welfare?

In a world where employee needs have changed quickly, Onsurity connects care with convenience. Its ecosystem helps all types of organisations—from small startups to growing enterprises. They can add health, safety, and wellness to their routine. They can do this without overspending or disrupting their processes.

Here’s how:

1. Tailored Health & Wellness Bundles

Gone are the days of one-size-fits-all benefits. Onsurity provides modular, subscription-based health and wellness plans. These plans meet the specific needs of SMBs, solopreneurs, and growing teams. Many of these groups have often been left out of the group insurance system.

Key offerings:

• Group health insurance for teams as small as 3 people, with scalable options as the company grows.
• 60% discounts on lab tests and diagnostics through partner networks.
• 15% off medicine orders through top-tier pharmacies
• Employees can access gyms and workouts across India through platforms like FitPass and Cult.fit.

Value Add: These bundles remove the high upfront cost of traditional insurance. This makes health benefits accessible for India’s large informal and SME workforce.

2. End-to-End Digital Management

What sets Onsurity apart isn’t just what it offers, but how it delivers. Every part of the employee welfare experience is streamlined, paperless, and intuitive.

Features that redefine simplicity:

• Digital onboarding within minutes, no long forms, no HR bottlenecks.
• Teamsure Integration, a plug-and-play platform that syncs with your existing HR tools.
• Centralised dashboard for real-time tracking of claims, usage, and plan optimisation
• Zero-paperwork claims, tracked digitally with 24/7 support and instant status updates.

#Onsurity’s TeamSure dashboard serves as a welfare tracker and a people intelligence tool. It helps HR teams spot high-usage trends and adjust wellness initiatives accordingly.

3. Proactive Employee Engagement

Wellness is not a one-time activity. It’s a rhythm. Onsurity invests in education, activation, and community. This way, employees gain not just access, but also agency.

Onsurity’s signature engagement tools:

• Wellness Wednesdays: Join us each week for talks on mental health, money skills, fitness tips, and beating burnout.
• Online resource hub with preventive health content, expert talks, and guided challenges.
• Custom engagement campaigns around national health days, fitness contests, and mindfulness streaks.

Emotional ROI: Employees feel empowered, informed, and supported,not just protected.

This proactive approach creates a wellness culture. Employees take charge of their health journey. They get support from leadership, guidance from data, and backing from Onsurity’s infrastructure.

In short, Onsurity changes compliance from a simple checkbox into a culture-driven catalyst. It shows that health isn’t just a benefit; it’s a choice leaders make.

Also, read: 10 Ways to Improve Mental Health at the Workplace

Conclusion

In this trust-deficient, burnout-prone professional world, employee welfare is no longer a bonus,it’s the backbone. It boosts performance, encourages retention, lowers burnout, and creates a culture of dignity and care. The most successful organisations tomorrow won’t have the biggest payroll. Instead, they will have the strongest commitment to human sustainability.

Employee welfare is now key to strategic leadership. It includes key benefits like PF and ESI. It also offers non-statutory support, such as flexible schedules, mental health programs, and group wellness insurance.

Onsurity steps in here, not as another provider. We are a digital-first, care-focused partner for organisations. We help them achieve their wellness goals.

By offering:

• Modular and affordable health plans
• Seamless and real-time digital claims experience
• Engaging in wellness education through Wellness Wednesdays.
• Fitness and preventive care incentives

Onsurity helps organisations provide benefits that are not only compliant but also caring and fully customisable.

The future of work isn’t just about performance, it’s about people.

If you’re an HR leader, founder, or a people-first pro, it’s time to take action. Your team deserves more than just the bare minimum.

Build your welfare strategy with intention. Deliver care with impact. And let Onsurity be your partner in that journey.

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