Mumbai, Dec. 13 -- Indian companies are rethinking the benefits they offer their staff, such as healthcare, retiral plans, wellbeing perks, and leave, as they seek to control budgets while retaining top talent without compromising on employee experience. The move comes as employee costs escalate, and health insurance premiums balloon, prompting firms to redesign their benefits programs to align with the needs of a multi-generational workforce and ensure financial discipline. "Rising costs-driven by medical inflation at 11% outpacing general inflation-are compelling organizations to optimize benefit strategies without compromising employee experience. The true cost of benefits depends on utilization, prompting a recalibration of what remains standard versus what becomes flexible," said Vinod VK, head of health and benefits, India, Willis Towers Watson (WTW), an insurance broker. Companies are phasing out benefits like telemedicine, which was indispensable during the pandemic but no longer essential, as they seek to cut unnecessary costs, he said. WTW's Benefits Trends Survey 2025, shared exclusively with Mint, shows that 55% of the more than 500 employers studied in India underlined that the pressures of rising benefit costs on budgets are a "key business issue". About 38% said that financial constraints are limiting their ability to deliver on wellbeing programs, while 34% acknowledged that a tighter budget impacted health benefits offered to employees. To be sure, technology is reshaping employee profile, prompting companies to look at their benefits programs through a new lens. According to a C-suite executive at one of the top three private banks in India, employee costs along with the advent of artificial intelligence (AI) have pushed them to rethink what benefits will work for the firm. "AI has pushed the banks to relook if certain profiles are needed. In that case, the kind of benefits offered also change," said this executive who did not want to be named. Also, the new labour codes mandate firms to ensure annual health check-ups for employees above 40. "That benefit will up our expenses and, therefore, one has to look at which benefits stay and which ones go away," the executive added. In its 2025-26 Benefits Scorecard, Mumbai-based Prudent Insurance Brokers said that although more firms are shifting to flexible benefits, scaling these programs remains difficult due to year-round engagement needs, inconsistent participation, and fast-changing expectations. "Forward-looking companies" are adopting choice-based and personalised benefit programs, including both insurance and non-insurance options, often powered by wallet-based solutions, it said. These may include wellbeing plans that cover physical fitness, elder care, pet care, pregnancy care, financial wellness, health plans, health coach, women-specific wellness, and disease management. In November, the government consolidated the country's employment statutes into four codes that guarantee minimum wages, early gratuity, social security, and occupational safety, which are likely to raise costs for employers. Pradeep Chauhan, founder and chief economic officer of Finfinity, a fintech focused on employees' financial wellbeing, said that legacy firms are looking at ways to introduce benefits that deepen employee connect with their workplace. For example, refining medical plans to focus on high-impact care, directing wellness efforts towards common medical needs, giving more choices to employees within the same budget, or financial guidance tools that help employees manage money better, without the companies incurring any extra costs....