A Study on Cost Analysis of Employee Benefits

Employee benefits represent a substantial component of total compensation and significantly influence employee satisfaction, retention, and organizational performance.While benefits enhance workforce stability, they also impose considerable financial obligations on organizations.This study examines the cost structure of employee benefits, compares statutory and voluntary benefits, and analyses their proportion relative to total salary expenditure.Using a descriptive and analytical research design, the study integrates primary data from employees and HR personnel with secondary data from payroll records and company reports.The findings reveal that statutory benefits constitute a fixed and unavoidable financial burden, whereas voluntary benefits contribute more directly to employee motivation and retention.The study concludes that systematic cost analysis supports strategic HR planning, financial sustainability, and optimized benefit allocation.