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₹5 Lakh Health Cover Becomes New Employer Benefits Baseline
More companies are giving workers stronger health benefits.
The report says more employers now offer health insurance above ₹5 lakh than before.
Maternity cover and protection for life and accidents are also becoming more common.
The typical organisation’s health cover is now ₹5 lakh, and its maternity cover benchmark is ₹50,000.
Companies are also spending more on healthcare for each employee.
Health benefits can include more than insurance.
Telehealth, check-ups and mental-health support are being added.
Funded startups are adopting broad packages early, while local Indian businesses are still catching up.
The report describes a move toward looking after workers’ health in several ways.
The share of companies offering health cover above ₹5 lakh has increased 53% since FY22.
Employers offering maternity cover above ₹75,000 rose 155%, while group term life and personal accident cover rose 179%.
The median organisation’s 2025–26 benchmark includes ₹5 lakh health cover, family coverage and ₹50,000 maternity cover.
Median per-employee health-benefit investment grew at a 14.7% annual rate over the past three years; healthcare’s share of benefits spending rose from 3% to 6.1% since FY23.
Employers are adding benefits such as telehealth, health check-ups and mental-health support, with average benefits beyond insurance rising from one to three.
- Who
- Employers and companies, as described in Plum’s report.
- What
- Health and other employee benefits are becoming more comprehensive, with higher insurance cover and more healthcare services.
- Where
- Across employer categories in India.
- When
- The comparisons cover changes since FY22 and FY23, and a 2025–26 median benchmark.
- Why
- The report says benefit investment is rising due to healthcare inflation and improvements in benefit quality and coverage; funded startups are also adopting comprehensive benefits to compete for talent.
Earlier adopters
Still catching up
Adoption of comprehensive benefits
Earlier adopters
Funded startups are adopting comprehensive benefits early to compete for talent.
Still catching up
Local Indian businesses are still catching up with funded and international companies.
Key facts
- Health cover above ₹5 lakh
- Share of companies offering it increased 53% since FY22.
- Maternity cover above ₹75,000
- Employers offering it increased 155% since FY22.
- Group term life and personal accident cover
- Addition of these covers rose 179% since FY22.
- Median health-benefit investment
- Grew at a 14.7% CAGR over the last three years.
- Healthcare share of benefits spending
- Rose from 3% to 6.1% since FY23.
- Median health-cover benchmark
- ₹5 lakh sum insured in 2025–26.
- Benefits beyond insurance
- Average number increased from one to three; examples include telehealth, check-ups and mental-health support.
Sources
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