India benefits spotlight: Helping employees offset childcare expenses with LSAs
A guide on why childcare is a hot topic for employers with employees in India, and how LSAs can help.
In this piece
Meaningful caregiving benefit for employees in India
Support for employees with caregiving responsibilities is essential in today’s dynamic work environment.
Childcare assistance is valuable for working parents, helping them balance their professional and caregiving responsibilities. These benefits have far-reaching effects on employers too. Caregiving benefits can improve employee retention, enhance workplace diversity, and increase worker productivity.
Companies have turned to Lifestyle Spending Accounts (LSAs) as a strategic means to help offset childcare expenses.
In recent years, employers with employees in India have adopted such measures at a steady pace.
Here’s a short guide on why childcare is a hot topic for employers with employees in India, and how LSAs can help.
Rethinking childcare support
To reduce barriers to workforce participation, the Indian government introduced policies in 2017 requiring employers to provide childcare options, such as access to crèche facilities, which are daycare centers in India.
Since then, employers have turned to LSAs to offer employees financial support for childcare needs.
LSAs give employees greater flexibility and choice, allowing parents to select the childcare solution that best fits their unique needs.
Real-world impact
Employers have partnered with Forma to implement LSAs that support crèche benefits.
For example, our clients provide monthly allowances ranging from 7,000 INR ($80 USD) to 10,000 INR ($120 USD) through LSAs. The accounts typically cover childcare service expenses such as daycares or babysitters.
Navigating compliance
While LSAs offer great flexibility, they may not fulfill all legal requirements related to caregiving benefits or crèche facilities in India. Forma advises clients to collaborate closely with legal counsel to ensure their benefits programs align with local regulations.
Get support from Forma
As the workplace evolves, so do employee needs. Forma’s platform supports childcare benefits and enables seamless management of a wide range of customizable spending accounts. This comprehensive approach ensures a superior experience for employees and effortless administration for HR teams.
Ready to revolutionize your employee benefits in India? <span class="text-style-link text-color-blue" fs-mirrorclick-element="trigger" role="button">Schedule a demo</span> with Forma today and discover how we can help you create a more supportive, inclusive, and productive workplace.
