Dear All, Can someone provide us information as subjected " Diffrence b/w Gratutity and superannuation" Regards, Vikas Chopra
From India, Delhi
From India, Delhi
The payment of a gratuity to employees upon cessation of service is a statutory obligation imposed on employers by the Payment of Gratuity Act, 1972. In terms of the Act, gratuity is payable to an employee on the termination of his employment after he has rendered continuous service for not less than 5 years (a) on his superannuation or (b) on his retirement or resignation or (c) on his death or disablement due to accident or disease (completion of 5 years is not, however, necessary for payment of gratuity in case of death or disablement). The gratuity is to be calculated at the rate of 25/26th of a month’s wages for every completed year of service or part thereof in excess of six months, subject to a maximum of Rs.3,50,000/-. However, if the employees of any establishment are in enjoyment of gratuity calculated at higher rate such higher rates would apply in their case.
Superannuation is an employee's voluntry contribution and 15% of his basic salary will be deducted for the same. When ever he leaves the particular organization, he can withdraw the amount.
From India, Madras
29Superannuation is an employee's voluntry contribution and 15% of his basic salary will be deducted for the same. When ever he leaves the particular organization, he can withdraw the amount.
From India, Madras
Mr. Gaurava has given the following information.
Difference between Superannuation and Gratuity
As Per the Indian Accounting Standard 15 or AS 15 (Rev.)
1. Superannuation is a defined contribution plan
2. Gratuity is a defined benefit plan
1. Superannuation is employee's contribution
2. Gratuity is employer's contribution
1. Employee can withdraw 1/3 or Superannuation Fund as tax free income and with rest pf 2/3 he has to buy an annuity plan (pension plan).
2. 100% of the Gratuity amount is Income Tax Free and can be received in one go.
1. Superannuation is not a statute
2. Gratuity is statute
1. Superannuation can be withdrawn any time ( leaving the company or retiring)
2. Gratuity can be received only when you complete 5 years of continious service.
From India, Madras
Difference between Superannuation and Gratuity
As Per the Indian Accounting Standard 15 or AS 15 (Rev.)
1. Superannuation is a defined contribution plan
2. Gratuity is a defined benefit plan
1. Superannuation is employee's contribution
2. Gratuity is employer's contribution
1. Employee can withdraw 1/3 or Superannuation Fund as tax free income and with rest pf 2/3 he has to buy an annuity plan (pension plan).
2. 100% of the Gratuity amount is Income Tax Free and can be received in one go.
1. Superannuation is not a statute
2. Gratuity is statute
1. Superannuation can be withdrawn any time ( leaving the company or retiring)
2. Gratuity can be received only when you complete 5 years of continious service.
From India, Madras
GRATUITY for continous good service but only after 5 yrs SUPERANNUATION is at the time of retirement.
From India, Tiruchchirappalli
From India, Tiruchchirappalli
Dear Vikas,
Superannuation is retirement on completing the prescribed age of retirement (say 60 years of age) and getting all the prescribed retirement benefits, including retirement gratuity.
On the other hand gratuity includes service gratuity or retirement/death gratuity.
Retirement gratuity is payable on retirement after completing the prescribed age of retirement (superannuation, voluntary or compulsory retirement, as the case may be).
Death gratuity is payable on death of an employee based on the number of completed six-monthly periods of service before the death of an employee.
Similarly, service gratuity is payable to an employee on leaving service or termination from service, provided he has rendered not less than 5 years of minimum qualifying service in the organization.
Hope this would have clarified your query.
PS Dhingra
Vigilance & Transformation Management Consultant
Dhingra Group of management & Educational Consultants
New Delhi
From India, Delhi
Superannuation is retirement on completing the prescribed age of retirement (say 60 years of age) and getting all the prescribed retirement benefits, including retirement gratuity.
On the other hand gratuity includes service gratuity or retirement/death gratuity.
Retirement gratuity is payable on retirement after completing the prescribed age of retirement (superannuation, voluntary or compulsory retirement, as the case may be).
Death gratuity is payable on death of an employee based on the number of completed six-monthly periods of service before the death of an employee.
Similarly, service gratuity is payable to an employee on leaving service or termination from service, provided he has rendered not less than 5 years of minimum qualifying service in the organization.
Hope this would have clarified your query.
PS Dhingra
Vigilance & Transformation Management Consultant
Dhingra Group of management & Educational Consultants
New Delhi
From India, Delhi
• Meaning of the word Superannuation is to retire upon attaining retirement age.
• Gratuity is one of the statutory benefits applicable on superannuation (retirement) and in case of some other events like resignation, death etc. Gratuity is well defined in Payment of Gratuity Act and fellow members have also given information on it.
• Provident Fund and Pension is also one of the statutory superannuation benefits.
• Only some companies have Superannuation Benefit Schemes, apart from statutory superannuation benefits. Since they are non statutory benefits, different companies have different schemes for this depending upon their policies and capacity to pay.
Thanks & Regards
From India, Pune
• Gratuity is one of the statutory benefits applicable on superannuation (retirement) and in case of some other events like resignation, death etc. Gratuity is well defined in Payment of Gratuity Act and fellow members have also given information on it.
• Provident Fund and Pension is also one of the statutory superannuation benefits.
• Only some companies have Superannuation Benefit Schemes, apart from statutory superannuation benefits. Since they are non statutory benefits, different companies have different schemes for this depending upon their policies and capacity to pay.
Thanks & Regards
From India, Pune
Dear
Superannuation is terminal benefit even before completion of 5 years service.
Superannuation may be voluntary or Contributions from the Management as part of CTC.
Gratuity is a statutory social security benefit.But Superannuation benefit is not so.
With Regards
N Kannabiran
From India, Madras
Superannuation is terminal benefit even before completion of 5 years service.
Superannuation may be voluntary or Contributions from the Management as part of CTC.
Gratuity is a statutory social security benefit.But Superannuation benefit is not so.
With Regards
N Kannabiran
From India, Madras
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Gratuity for service after superannuation. doc
FORM-F-NOMINATI ON OF GRATUITY.pdf