Recent research by Jelf Employee Benefits has found that 90% of employers see tax-reliefs on medical-related employee benefits as key to controlling sickness absence. However, the research also shows that identifying the right benefits for such reliefs is pivotal for this to be successful.
The Sickness Absence Review (SAR), and the recent Government response to that document, placed an onus on rehabilitation services as the principle beneficiary of any new tax-reliefs. However, Jelf Employee Benefit’s research provides evidence that employers are not convinced that this component of the medical-related suite of benefits will be the most useful in reducing absence levels and costs.
Indeed, less than 5% of employers surveyed believed that rehabilitation services were the most important benefit in managing sickness absence. Healthcare policies (31%), and Occupational Health (31%) were seen as the most useful benefits in this area. These were followed by Employee Assistance Plans (12%), Income Protection (11%) and Medical Cashplans (10%).
With a decision on whether to allow tax reliefs on medical-related employee benefits due to be made in the 2013 budget, Jelf Employee Benefits believes that these findings are important, and should be taken into consideration by policy-makers.
Steve Herbert, head of benefits strategy for Jelf Employee Benefits says: ‘Rehabilitation will always have an important role to play in addressing sickness absence, however employers are clearly saying that they would like to see tax incentives across the board, but if this is not possible at this time, it would be sensible to target any reliefs on the areas that employers feel will best help them control sickness absence.
Herbert continues: ‘The Sickness Absence Review offers a lot of practical suggestions that could really benefit employers, and the economy as a whole, and it would be a shame if key opportunities were lost. We urge the Government to listen to what employers say they actually need.’
