Employee Benefits: Rethinking Required For Workers In Polluted Cities

By Nochiketa Dixit,

In India’s major cities, smog has become a part of daily life and is now redefining boardroom conversations. The Energy Policy Institute at the University of Chicago (EPIC) reports that every person in the country lives in areas exceeding the World Health Organisation’s safe limit for PM₂.₅. In the northern plains alone, more than 540 million people inhale unsafe air each day.

The State of Global Air 2025 report links nearly 2 million premature deaths in India to air pollution in 2023. The World Bank estimates the economic loss at about 1.36 percent of GDP, or close to US $36.8 billion, driven by healthcare costs and reduced productivity.

This impact is also visible within organisations across all domains. Employees feel more fatigued, sick leaves increase, health insurance claims rise, and attrition begins to show over time.

Why Employee Benefits Need to Evolve

Employee benefits in India were designed when health risks came mainly from lifestyle diseases or hospitalisation. Provident fund contributions, basic health insurance, and annual bonuses still matter, but they do not address the daily exposure to pollution in cities such as Delhi, Gurugram, Mumbai, and Lucknow.

Dalberg estimates that India loses nearly 1.3 billion workdays every year due to pollution-related illnesses, leading to about US $6 billion in lost output. Nearly 80 percent of this loss comes from employees who continue working but perform below capacity, a condition known as presenteeism.

Adding a Preventive Lens to Health Plans

Most benefit plans still focus on treatment instead of prevention, even though today’s risks go well beyond hospitalisation. Employers are now starting to include environmental health in their wellness strategy.

Companies such as Coca-Cola India, KPMG, Deloitte, and Infosys have begun allowing remote or flexible work when air quality falls below safe levels. This helps employees reduce exposure during travel and manage responsibilities at home. Acer India has installed air purifiers in its meeting rooms and also given home units to employees, so that they have access to cleaner air both at work and at home. KPMG India has strengthened its HVAC systems with MERV 14 filters and added indoor plants across offices to keep air movement steady. Panasonic India has introduced air conditioners equipped with PM0.1 filters, ensuring that indoor spaces are protected from air pollutants.

Alongside such measures, several organisations are providing N95 masks, arranging teleconsultations, and including lung and heart screenings in their regular health checks. Some companies have begun adding pollution-related illnesses to their insurance cover, and many are now trying to make daily travel less harmful by supporting the use of electric vehicles, carpooling, and public transport.

Global Practices That Offer Insight

Across countries, more companies are beginning to see how the environment in which people work can influence their health and performance. In China, large firms have installed building-wide filtration systems and AQI dashboards. China Resources Land, for instance, worked with a Swiss filtration company to create a clean-air zone for safer workspaces.

The World Health Organisation has advised that work policies should be adjusted according to exposure levels, allowing flexible hours and ensuring that proper air filtration systems are installed in regions that usually experience high amounts of air pollution. In Europe and North America, many organisations are setting up green-certified offices, encouraging people to cycle to work, and linking employee benefits with larger sustainability efforts that support overall well-being.

Steps for Indian Employers

For Indian organisations, dealing with pollution-related health problems can begin with a few small, practical steps that fit how people actually work and live in our cities.

Map exposure: Assess pollution risk by employee role, location, and commute.

Link benefits to AQI triggers: Use air-quality levels as a signal to start remote work, adjust office hours, or extend short-term wellness support.

Upgrade infrastructure: Improve ventilation with MERV 14 filters and place air purifiers in key areas.

Recalibrate health coverage: Include illnesses linked to pollution, add regular lung and heart check-ups, provide teleconsultation options, and ensure coverage for asthma, COPD, and other related conditions.

Strengthen awareness and communicate clearly: Keep employees informed about air-quality levels, share practical guidance on using masks and purifiers, and advise them when outdoor travel should be avoided.

Evaluate employee benefits through an ESG lens: Look at employee benefits in the context of sustainability goals, by adding incentives for electric or clean-fuel vehicles, promoting cycling to work, and improving waste management at the workplace.

Report environmental impact: Publish the organisation’s carbon footprint in the annual report to strengthen transparency and demonstrate accountability.

Acting on these seven items will limit productivity loss, contain healthcare spend, and help retain staff. Delay will only make those three pressures worse over time.

The author is MD - Industries, EDME Insurance Brokers

(Disclaimer: Views expressed are the author’s own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.)