Dear Seniors,
We are recruiting a person for the CEO position in our company. In his current company, he is receiving a superannuation benefit of 12% in his salary structure. I would like to understand this component better as it is not currently included in our salary structure. Could you please confirm if it is necessary for a company to provide this benefit? Additionally, we do not have a gratuity component in our current salary system, but we are in the process of registering our company under PF.
Your prompt response on the above matter is greatly appreciated as it is urgent.
Thank you.
Best regards,
Yogitta
From India, Mumbai
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4We are recruiting a person for the CEO position in our company. In his current company, he is receiving a superannuation benefit of 12% in his salary structure. I would like to understand this component better as it is not currently included in our salary structure. Could you please confirm if it is necessary for a company to provide this benefit? Additionally, we do not have a gratuity component in our current salary system, but we are in the process of registering our company under PF.
Your prompt response on the above matter is greatly appreciated as it is urgent.
Thank you.
Best regards,
Yogitta
From India, Mumbai
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Dear Yogitta,
Superannuation, sometimes called 'super', is a special way of saving to provide yourself with an income when you retire. While there are other ways of saving for retirement, superannuation saving is different because it is linked with your employment. Your employer may be required to make superannuation contributions on your behalf to a special fund called a superannuation fund. These funds are special because if they meet certain government rules, they may pay less tax than if you were to put the money in a bank account. There are more tax benefits for you when you retire.
Or in other words, simply put, it is a pension scheme (where normal pensions are not available). 15% of the basic salary is contributed by the employer to this scheme, and in most places, LIC Group Insurance department manages these schemes.
Hope this information is sufficient.
Regards,
Jai
From India, Pune
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Superannuation, sometimes called 'super', is a special way of saving to provide yourself with an income when you retire. While there are other ways of saving for retirement, superannuation saving is different because it is linked with your employment. Your employer may be required to make superannuation contributions on your behalf to a special fund called a superannuation fund. These funds are special because if they meet certain government rules, they may pay less tax than if you were to put the money in a bank account. There are more tax benefits for you when you retire.
Or in other words, simply put, it is a pension scheme (where normal pensions are not available). 15% of the basic salary is contributed by the employer to this scheme, and in most places, LIC Group Insurance department manages these schemes.
Hope this information is sufficient.
Regards,
Jai
From India, Pune
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Hi Yogitaa,
Superannuation, in simple terms, is known as retirement benefits. This means that once any personnel attains the age of retirement, the employee is said to be in superannuation.
Gratuity is a benefit given to an employee who has served for a minimum of 5 years in an organization. The gratuity is typically calculated as 15 days' salary for each year of service. For example, if an employee has served for 5 years and 6 months, he/she will receive gratuity for 6 years. If the employee has served for less than 5 years and 6 months, the gratuity will be calculated for 5 years. The 15 days' salary includes only Basic, DA, and HRA. Conveyance and other allowances are not considered.
Thanks,
Best Regards,
Srinidhi Prasad
From India, Bangalore
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Superannuation, in simple terms, is known as retirement benefits. This means that once any personnel attains the age of retirement, the employee is said to be in superannuation.
Gratuity is a benefit given to an employee who has served for a minimum of 5 years in an organization. The gratuity is typically calculated as 15 days' salary for each year of service. For example, if an employee has served for 5 years and 6 months, he/she will receive gratuity for 6 years. If the employee has served for less than 5 years and 6 months, the gratuity will be calculated for 5 years. The 15 days' salary includes only Basic, DA, and HRA. Conveyance and other allowances are not considered.
Thanks,
Best Regards,
Srinidhi Prasad
From India, Bangalore
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Dear Sirs,
Can anybody tell me how an employee can apply for the superannuation benefits after retirement? I have noticed that superannuation is always included in the total CTC. If an employee decides to leave the organization, how can the individual employee access these benefits and what is the exact procedure?
Looking forward to the reply.
Thank you,
Abhishek
From India, Pune
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Can anybody tell me how an employee can apply for the superannuation benefits after retirement? I have noticed that superannuation is always included in the total CTC. If an employee decides to leave the organization, how can the individual employee access these benefits and what is the exact procedure?
Looking forward to the reply.
Thank you,
Abhishek
From India, Pune
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Let's first understand the term "Superannuation" in general.
Superannuation is an investment designed to provide money for your retirement. Most people start superannuation when they start work because their employer has to pay contributions. You can choose to top up the funds out of your own pocket. If you are self-employed, you can choose whether or not to have superannuation. Your superannuation can grow to be a significant asset over your working life. You benefit from saving regularly over many years; your superannuation fund makes the savings work for you by investing them, and your money is generally taxed more lightly than other forms of investment. Your superannuation fund may also offer life insurance cover and disability insurance.
Now, comes its applicability in India. Superannuation in India is not mandatory but has been encouraged by its relatively tax-favorable status. Employer contributions are tax-deductible, and investment earnings are not taxed. Although the benefits are taxed as income in the hands of employees, one-third of the benefits may be taken as a tax-free lump sum.
I hope you will gain from this information.
Thanks and Regards,
Sanjeev
From India, Mumbai
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Superannuation is an investment designed to provide money for your retirement. Most people start superannuation when they start work because their employer has to pay contributions. You can choose to top up the funds out of your own pocket. If you are self-employed, you can choose whether or not to have superannuation. Your superannuation can grow to be a significant asset over your working life. You benefit from saving regularly over many years; your superannuation fund makes the savings work for you by investing them, and your money is generally taxed more lightly than other forms of investment. Your superannuation fund may also offer life insurance cover and disability insurance.
Now, comes its applicability in India. Superannuation in India is not mandatory but has been encouraged by its relatively tax-favorable status. Employer contributions are tax-deductible, and investment earnings are not taxed. Although the benefits are taxed as income in the hands of employees, one-third of the benefits may be taken as a tax-free lump sum.
I hope you will gain from this information.
Thanks and Regards,
Sanjeev
From India, Mumbai
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Lets 1st understand the term “Superannuation” in general.
Superannuation is an investment designed to provide money for your retirement. Most people start superannuation when they start work because their employer has to pay contributions. You can choose to top up the funds out of your own pocket. If you are self-employed you can choose whether or not to have superannuation. Your superannuation can grow to be a significant asset over your working life. You benefit from saving regularly over many years, your superannuation fund makes the savings work for you by investing them, and your money is generally taxed more lightly than other forms of investment. Your superannuation fund may also offer life insurance cover and disability insurance.
Now, comes its applicability in India. Superannuation in India is not mandatory but has been encouraged by its relatively tax favorable status. Employer contributions are tax deductible and investment earnings are not taxed. Although the benefits are taxed as income in the hands of employees, one third of the benefits may be taken as a tax free lump sum.
I hope you will gain from this information.
Thanks and Regards
Sanjeev
From India, Mumbai
Acknowledge(0)Amend(0)
Superannuation is an investment designed to provide money for your retirement. Most people start superannuation when they start work because their employer has to pay contributions. You can choose to top up the funds out of your own pocket. If you are self-employed you can choose whether or not to have superannuation. Your superannuation can grow to be a significant asset over your working life. You benefit from saving regularly over many years, your superannuation fund makes the savings work for you by investing them, and your money is generally taxed more lightly than other forms of investment. Your superannuation fund may also offer life insurance cover and disability insurance.
Now, comes its applicability in India. Superannuation in India is not mandatory but has been encouraged by its relatively tax favorable status. Employer contributions are tax deductible and investment earnings are not taxed. Although the benefits are taxed as income in the hands of employees, one third of the benefits may be taken as a tax free lump sum.
I hope you will gain from this information.
Thanks and Regards
Sanjeev
From India, Mumbai
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I'm Nitin, an MBA student from Pune University. I want information about superannuation (VRS) for a presentation. Could you please help me and email me at nitin_no.1mastermind@yahoo.in?
Thank you, Nitin Suwase
From India, Pune
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Thank you, Nitin Suwase
From India, Pune
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Can a superannuation fund introduce exit option to the employees which will enable to pay the accumulated balance to respective employee subject to tax as per provisions of IT Act Regards, Vikas
From Germany
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From Germany
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Can anyone tell me if gratuity and superannuation are mandatory for a company to pay for employees? Also, can the company choose to keep gratuity as part of CTC only for those employees who are completing 5 years with the company, while the CTC for the others remains without gratuity?
From India, Bangalore
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From India, Bangalore
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Dear Seniors,
My name is Rahul, and I am currently working in an MNC organization. Previously, I had worked with another organization for almost 2 years and 6 months, where superannuation was included in my salary as 15% of my Basic Salary. Although I am not yet at the retirement age, I am interested in withdrawing this amount if possible. Could you please provide me with information on the process for doing so?
Thank you in advance.
Thanks & Regards,
Rahul
From India, Pune
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My name is Rahul, and I am currently working in an MNC organization. Previously, I had worked with another organization for almost 2 years and 6 months, where superannuation was included in my salary as 15% of my Basic Salary. Although I am not yet at the retirement age, I am interested in withdrawing this amount if possible. Could you please provide me with information on the process for doing so?
Thank you in advance.
Thanks & Regards,
Rahul
From India, Pune
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Dear Sir,
Please note that I worked at ABC Company from July 8, 2008, to July 13, 2013. I would like to inquire whether I am entitled to Superannuation or not, as my friends have received their superannuation amounts for the period they served. Kindly confirm if I will be receiving this amount as I am in need of the funds, and this is rightfully my money.
With warm regards,
Lalit Vasisht
From India, New Delhi
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Please note that I worked at ABC Company from July 8, 2008, to July 13, 2013. I would like to inquire whether I am entitled to Superannuation or not, as my friends have received their superannuation amounts for the period they served. Kindly confirm if I will be receiving this amount as I am in need of the funds, and this is rightfully my money.
With warm regards,
Lalit Vasisht
From India, New Delhi
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Hi,
I worked in one organization previously for 8 years and left the organization last year. I am currently working for another employer. I have received 2 and a half lakh Rs. as accumulated superannuation benefit. While crediting the money into my bank account, 5% of TDS was deducted by the ex-employer. Please let me know which section I should put this component in. If I show it as a part of my income, then 20% tax will be deducted (currently, I'm in the 20% tax slab). Please help me.
Best regards,
From India, Chennai
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I worked in one organization previously for 8 years and left the organization last year. I am currently working for another employer. I have received 2 and a half lakh Rs. as accumulated superannuation benefit. While crediting the money into my bank account, 5% of TDS was deducted by the ex-employer. Please let me know which section I should put this component in. If I show it as a part of my income, then 20% tax will be deducted (currently, I'm in the 20% tax slab). Please help me.
Best regards,
From India, Chennai
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