Term · Explained
Pension and retirement contributions
Savings schemes for retirement to which employees and employers contribute - such as pension funds, provident funds, 401(k) plans, or national social security.
Read more All hr glossary
Pay & benefits
Social insurance and statutory benefits
Government-run or mandated schemes that give workers health cover, sickness, unemployment, or disability support.
- Topic
- Pay & benefits
- Read time
- 2 minutes
- Level
- Beginner
- Applies to
- HR teams and employees
What it means
Many countries fund health care, sickness pay, unemployment, and disability cover through contributions from employers and employees (for example national insurance, social security, or employee state insurance). Rates, wage limits, and benefits change over time and differ by country.
Benefits
- Helps employees understand their pay and benefits.
- Reduces payroll questions to HR.
- Builds trust through clarity.
- Helps compare offers correctly.
Example
- An employee below a wage ceiling is covered and contributions are deducted from each payslip.
Related terms
- Pension contributions
- End-of-service benefit
- Group health insurance
Rates, limits, and rules (for example for pensions, social insurance, and end-of-service pay) differ by country and company and change over time. Treat these as general explanations and confirm the current position where you operate before relying on them.
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Term · Explained
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Monthly payroll checklist
The steps to run payroll accurately every month - from freezing attendance to payslips and statutory filings.
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