As the trend of hiring part-time employees continues to increase, companies must consider offering benefits like health insurance from an insurance company in Pakistan to these workers.
It is a common question for companies whether to offer benefits for those working less than full-time or not.
If you’re also concerned about how to provide fair and equitable benefits for part-time employees, then this blog is a must-read for you!
What is a Part-Time Employee?
The distinction between a part-time and full-time employee can vary depending on the employer’s definition.
A part-time employee is typically considered as someone who works fewer hours than a full-time worker, however, the specific number of hours that constitutes part-time can differ among companies.
It is common for different businesses to have different criteria for determining full-time or part-time employment, therefore, an individual who works 35 hours per week could be considered as part-time by one business and full-time by another.
What Are the Most Common Benefits for Part-Time Employees?
Common benefits offered by employers to incentivize their part-time workers include:
- Retirement Plans: Employers can improve employee engagement and alleviate stress by offering a retirement savings plan for part-time workers who meet the eligibility criteria. This can help employees worry less about their financial future and focus more on their work.
- Fringe Benefits: Offering benefits such as paid holidays, vacations, tuition assistance, telecommuting options, flexible schedules, and other ancillary benefits can increase part-time workers’ sense of appreciation and foster greater loyalty to their employer.
- Health Insurance: Providing medical benefits can help retain employees and prevent staffing shortages and loss of productivity due to illness. Typically, an insurance company has a requirement for employees to work a minimum of 20 hours per week to be eligible for their plans in Pakistan. However, this requirement can vary depending on the insurance carrier and state laws.
What Benefits Are Required for Part-Time Employees?
Employers have some discretion in deciding which benefits to offer part-time workers, but certain benefits are legally required under federal and state laws, these include:
- Health Insurance: While some insurance companies in Pakistan may not require coverage for part-time employees, they may still include them in calculations for full-time equivalent employees. Depending on the number of part-time employees a business has and the number of hours they work, the company may reach the minimum threshold of 50 employees and be legally obligated to provide health insurance by one of the best health insurance companies in Pakistan for its full-time employees.
- Workers Compensation: Generally, all types of employees, including full-time, part-time, and seasonal, are covered by their employer’s workers’ compensation policy. This means that if they sustain an injury or illness while on the job, their medical expenses, rehabilitation, and a portion of the lost income will likely be covered by the employer’s workers’ compensation insurance.
- Unemployment: Part-time employees who have been laid off through no fault of their own are eligible for unemployment benefits which may vary depending on the state, their hours worked, and the wages they have earned.
Offering benefits to part-time employees is generally up to the discretion of employers.
As long as they meet all federal, state, and local minimum requirements, companies have the flexibility to determine the terms of their benefits packages and who is eligible for them.
In summary, offering benefits like health insurance from a Pakistani insurance company, retirement plans, etc to part-time employees is essential as companies rely more on this type of workforce. Benefits can lead to improved employee morale, retention, and loyalty.
Employers can offer a variety of benefits with the help of the best insurance companies in Pakistan, and it’s important to balance cost-effectiveness and fairness when creating a benefits program for part-time employees.
This not only supports employees but also helps ensure the long-term success of the company.