What Is Short-Term Disability (STD)? Meaning, Benefits & Policies in India
Book a Free DemoShort-Term Disability (STD)
A benefit that provides partial income replacement for employees unable to work due to illness or injury. STD coverage supports financial stability during recovery.
Short-Term Disability (STD) is an employee benefit that provides partial income replacement for a limited period when an employee cannot work due to illness, injury, or medical conditions not related to the job.
While STD insurance is more common in countries like the US, in India, similar benefits are often provided through employer-paid sick leave, group medical insurance, or company-specific policies. Large corporates and multinationals in India sometimes include STD coverage as part of their employee benefits package.
💬 “Pagarai’s HR policy templates helped us introduce short-term disability benefits that improved employee retention.” — Varun, HR Head
👉 Need to add STD coverage to your HR policies? [Get Pagarai’s benefits policy templates →]
Key Features of Short-Term Disability Benefits
| Feature | Purpose |
| Income Replacement | Provides partial salary during recovery |
| Coverage Period | Usually ranges from a few weeks to 6 months |
| Eligibility Criteria | Based on employment status and policy terms |
| Exclusions | May not cover pre-existing or self-inflicted injuries |
| Claim Process | Requires medical certification and HR approval |
Bonus: Clearly define STD terms in your employee handbook to avoid confusion.
Why It Matters
- Provides financial security during temporary medical leave
- Encourages employees to focus on recovery
- Reduces absenteeism-related stress for employees
- Improves employer branding through better benefits
- Helps attract and retain skilled talent
Common Tools for Managing STD Benefits in India
- HRMS platforms like Keka, GreytHR – for leave and benefits tracking
- Insurance portals – for group policy claims
- Pagarai HR Suite – for integrating STD benefits with payroll and leave systems
How Pagarai Helps
- Provides ready-to-use STD policy templates
- Tracks eligibility and claim status
- Integrates with insurance providers for faster processing
- Automates salary adjustments during STD leave
- Maintains compliance with company and insurance rules
FAQ
Q1: Is short-term disability insurance mandatory in India?
No — it is an optional benefit, though some employers include it voluntarily.
Q2: How is STD different from sick leave?
Sick leave is usually short-term and fully paid; STD is for longer absences and offers partial pay.
Q3: Who pays for STD benefits?
Either the employer (self-funded) or an insurance provider.
Q4: Can STD be extended beyond policy limits?
Only if the company policy or insurer allows it.
