Employee benefits

Employee benefits are increasingly important in Mainland China. It provides additional insurance coverage on top of Chinese social insurance. It includes accident insurance, medical insurance, term life, critical illness, hospitalization allowance and maternity. These benefits can be extended to the staff familly.

It is often used by companies as a staff retainer as it gives them a better security. Indeed, considering the social insurance limitations, complementary medical insurance or life insurance will allow the staff to have peace in mind, especially when the company covers as well the spouse or children.

There are a number of advantages to employee benefits for both employer and employee.

1. Employer advantages

* Helps attract and retain better qualified employees.
* Provides high risk coverage at low costs easing the company's financial burden.
* Improves efficiency and productivity as employees are assured of security for themselves and their families.
* Premiums are tax deductible as corporation expense, which means savings with quality coverage.

2. Employee advantages

* Peace of mind leading to better productivity as employees are assured of provision for themselves and families in any mishap.
* Employees with personal life insurance enjoy additional protection
* Confidence in company's EB schemes boost staff morale and pride in company
* Employees enjoy cheaper rates negotiated through their employer than they could obtain as an individual