Rising costs force Indian firms to rewrite employee benefits

Indian companies are rethinking the benefits they offer their staff, such as healthcare, retiral plans, well-being perks, and leave, as they seek to control budgets while retaining top talent without compromising on employee experience.

- Anshika Kayastha & Devina Sengupta

The move comes as employee costs escalate, and health insurance premiums balloon, prompting firms to redesign their benefits programs to align with the needs of a multi-generational workforce and ensure financial discipline.

“Rising costs—driven by medical inflation at 11% outpacing general inflation—are compelling organizations to optimize benefit strategies without compromising employee experience. The true cost of benefits depends on utilization, prompting a recalibration of what remains standard versus what becomes flexible,” said Vinod VK, head of health and benefits, India, WTW, a global advisory, broking and solutions company.