Companies generally offer a wide range of benefits as part of an employee’s remuneration package. The level of benefits offered is driven by various factors like:

• The minimum level of benefit prescribed as per regulation (if any)
• The retention and growth policies of the company
• The industry that the company operates in
• The cost involved in providing the benefit

Our advice can help companies do an effective cost-benefit analysis of offering or altering any employee benefits.

The structure of the benefit provided in terms of the level of benefit, eligibility and method of payout will determine the cost accrued while paying for the benefit and also the liability that would need to be held in the company’s books. Any potential increases or curtailment of the benefits in future would lead to a cost or a credit for the company.

By understanding the benefit offered and the changes that are planned, we can help you analyze the increases / reductions in costs under different scenarios and also offer advice on the reasons for the movements. Backed by a sound knowledge of the various accounting standards, we can explain to you the impact that any proposed change would have on your company’s financial statements.