Razorpay launches family assurance benefits policy for employees

Fintech start-up Razorpay has launched the family assurance benefits policy to provide financial support to the employee’s immediate family in case of an unfortunate demise.

Under the policy, the immediate family of the deceased employee will be eligible for 3X of the last drawn annual CTC of the deceased employee, accelerated vesting of all unvested ESOP (Employee Stock Ownership Plan) units, prorated 100% variable pay for the current performance cycle, prorated gratuity for employee’s tenure at Razorpay, the continuation of medical insurance coverage for the rest of the policy term in the same financial year as per the Group Medical Cover policy.

Chitbhanu Nagri, Senior Vice President of People Operations at Razorpay says, “This policy is our way to reiterate our commitment to our teams’ wellbeing and extend our contributions to the lives of our Razor families.” 

Notably, in June this year, the company revamped its employee health insurance policy to include live-in partners, same-gender partners, and those who identify as LGBTQIA+. In May this year, the company announced ESOP buyback programme for its employees worth $75 million. 

The development comes at a time when domestic start-up ecosystem is witnessing a funding winter with mass layoffs and "quiet quitting". Moreover, in the past months, the attrition rate in the industry has been at an all-time high with many employees opting for “moonlighting.”

As a result, several start-ups have opted to introduce employee-friendly policies such as insurance cover, ESOPs, healthcover, and mental health leaves amongst others, in order to retain talent. Last month, the online food aggregator Zomato said it has spent ₹15.95 crore on medical insurance cover of its delivery partners in 2021-22. In July, the company announced ESOP buyback programme for its delivery partners worth $24.19 million.