The importance of and types of employee benefits

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What are Employee Benefits

Employee Benefits are all the advantages that an employer offers in addition to the traditional salary.

In addition to a competitive salary, it is beneficial for employees to have additional benefits in their remuneration package, as this can result in lower personal costs and a comfortable retirement in the long term. And then there is the issue of incapacity for work: what happens if an employee becomes seriously ill and loses part of their income?

In recent years, there have been significant positive developments, both from insurance companies and brokers. Systems have been developed to support HR services and improve access to these employee plans. What is often not known is that SMEs now also have access to these options and that Employee Benefits are no longer reserved for large companies.

Group insurance

Group insurance enables you to maintain your standard of living in situations such as retirement, illness, accident or death.

Group insurance often focuses on pensions. In Belgium, every working person is entitled to a statutory pension, also known as the first pension pillar. In addition, the type of supplementary pension depends largely on the employer, which is also referred to as the second pension pillar. High-quality group insurance therefore contributes to financial comfort in old age.

More and more young people are questioning the scope of the statutory pension system. The financial situation of the Belgian government and the lack of savings reserves for the statutory pension are a real concern for many. As a result, in recent years we have seen an increasing interest among young people in building up a supplementary pension through their employer. No less than 80% of employees believe that it is also the employer's responsibility to contribute to this, and 76% see this as an important factor in wage negotiations.

The costs of provisions relating to death and guaranteed income are often surprisingly affordable, and in situations of long-term illness or death, they can be invaluable for both the person concerned and their surviving relatives.

The guaranteed income

Guaranteed income acts as an important safety net in situations of long-term illness for a variety of reasons, ranging from cancer to rehabilitation after an accident and burnout. Under this insurance, an employer specifically chooses to guarantee a replacement income for each employee so that they do not experience financial difficulties if they become unable to work due to illness or an accident. In Belgium, employees fall back on their health insurance fund after one month of illness, which means that they still receive their full salary during the first month of absence. What happens after that depends largely on the system provided by the employer. Not all employees have a supplementary income (through work).

Moreover, the guaranteed income is an extra-legal benefit that does not disappear, unlike many others. Company cars must be returned and meal vouchers are not paid out, but the guaranteed income remains a stable source of financial support, even during absence.

Outpatient medical expenses

The most well-known type of medical insurance is hospitalisation insurance, which protects employees and often their families against medical expenses incurred before, during and after hospitalisation, as well as in the event of serious illness. In addition, there is growing interest in outpatient medical expenses, with more comprehensive coverage throughout the year, regardless of hospitalisation.

Whereas the focus used to be more on financial recovery, prevention (such as dental care and outpatient costs) and support services (such as home help and reintegration into the labour market) are becoming increasingly important aspects of a good and balanced (medical) plan design.

Business Travel

Travel insurance through work is still too often overlooked. This insurance goes beyond traditional medical assistance in caring for employees who represent the company abroad. In addition to logical matters such as accidents or strikes affecting the means of transport they are using, the policy also includes additional cover such as an interpreter to assist them in the event of a serious incident.

What's more, there are policies that are easy to take out and cover not only frequent flyers but also occasional travellers. Another interesting feature is that these insurance policies often also offer protection to family members of business owners.