Social Security Benefits
An important aspect of any agreement between an employer and an employee is the entitlement to employee benefits. Social security conditions as stipulated in a contract of employment relate to annual leave and sick leave provisions, health insurance, retirement insurance and employee savings schemes. Before signing a contract and accepting a position with a company, you should always check to ensure that you fully understand the benefits you are entitled to.
Most companies today offer some form of compulsory savings scheme. This may be in the form of a retirement or pension plan or via an employee savings scheme. Both types of scheme require regular contributions from the employee which are usually matched by the employer. Such schemes are considered an integral part of most people's remuneration package and it is worthwhile investigating what a prospective employer has to offer before changing your membership in any existing schemes.
You should also check to see if the company offers a disability and/or life insurance scheme. While providing disability pay is only legal in some states, many companies offer it as a matter of course. Disability pay generally provides up to 60 percent of an employee's income for a set period of time (usually under 26 weeks.) In cases of long term disability, the figure is around 60 percent of the employee's income before tax. Most long term plans begin within 180 days of the accident or illness when short term disability payments end. All disability plans finish when an employee reaches the age of 65 and is covered by the government's social security policies.
Life insurance policies can be offered by most companies relatively cheaply. Group policies are the most popular and most employees opt for a policy that will award their dependants a sum equal to their salary in the event of their death. Some schemes also allow employees to insure family members for a small sum. Individuals can insure themselves for as little as five cents for every $1000 worth of coverage and no prior medical examinations are necessary.
The social security benefits you are entitled to as an employee are an important part of your package. Make sure you understand what you are entitled to and don't be afraid to seek guidance or clarification from your employer on the benefits they offer.
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