Navneeth Kumar, 38, an engineer from Bengaluru working with a large IT firm, requires insulin shots every day. Kumar’s monthly expense to manage his Type 2 diabetes is Rs 7,900. FY22, however, could turn out to be better for Kumar, as his diabetes-management expenses are likely to fall and he may also get expert dietary advice for sugar control.
Wellness allowance, until now a term used only in the healthcare and insurance sectors, could become a reality in FY22. Human resource consultants are now seeing a surge for wellness-based allowances in yearly compensation packages.
Reducing illness, improving productivity
Industry sources said that at least two dozen companies in the IT, startup and FMCG sectors have sought a compensation-mapping strategy from HR firms to include a wellness allowance. Names have not been disclosed due to non-disclosure agreements.
Pune-based HR firm Smart Career Rise has seen requests from corporate human resource teams on what should be the inclusions and exact allowance per employee. Smita Parekh, founder of Smart Career Rise, told Moneycontrol that the idea is to include wellness allowances to improve productivity and reduce illnesses.
“Companies are willing to include allowances for yoga sessions and supplements for vitamin deficiencies. Since employees are now working from home, this additional allowance will help maintain their health and boost their immunity amidst the Coronavirus outbreak,” she added.
But this is not a WFH-focussed allowance alone. HR consultants said that it would also help boost healthy living among employees. “If employees are fit, they can perform their daily tasks better. Though this is an additional cost for companies, they are ready to spend,” said Delhi-based HR consultant Pramitesh Sinha.
Due to Covid-19 and remote working, wellness has become the top focus for Indians. Movement is restricted with gyms and fitness centres still not fully functional, while there has also been a rise in mental health issues. A recent study by AIIMS researchers found that there was quarantine-induced stress and a rise in screen time among Indians.
What will a wellness allowance include?
The wellness allowance will be part of the annual compensation package. Similar to a travel allowance or medical allowance, employees will be given a fixed amount every month. Bills for purchases will have to be produced to redeem these benefits.
HR consultants told Moneycontrol that yoga sessions, basic counselling sessions with qualified therapists (up to five) and meditation classes would be allowed under this allowance. Health supplements for vitamin deficiency and even insulin shots would be part of the monthly allowance.
“Mindful living is the mantra among companies in India. Hence, the wellness allowance would also include some discounts/special offers for purchase of organic products or fitness items,” said Niranjan Basu of Kolkata-based HR consulting firm EmployFirst.
Will all employees get it?
The wellness allowance will be available for all employees, from the CEO to freshers. However, the quantum of the allowance will be proportional to the salary of the employee.
HR consultants said that the allowance will range from 8-10 percent of the basic salary of the employee. The more senior the employee, the higher will be the allowance.
In case a differently-abled employee requires special assistance to manage monthly expenses such as physiotherapy or health supplements, these will also be provided on a case-to-case basis.
“The top priority for the wellness allowance will be entry-level employees because these individuals may not be able to otherwise afford the wellness initiatives available in the market,” added Basu.
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