What Is Superannuation?????? - Salary Structure
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What Is Superannuation?????? - Salary Structure

yogitta Started The Discussion:

Dear Seniors we are recruiting a person in our company on CEO position..in his present company he is getting SUPERANNUATION (12%) in his salary structure.

I wanted to know what is that component, as we dont have this component in our salary structure. please let me know is it neccessary for a company to give that component?????????? we also dont have gratutiy component in our salary system. and we are in process to register our company under PF.

Please update me on the above, its very urgent.

Thanking you

With regards
Yogitta

Jaisharma2007 - Member Since: Jun 2007
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 it is a pension scheme,(where normal Pensions are not available). 15% basic salary is contributed by the employer to this scheme and most of the places LIC Group Insurance department manages these schemes.

Hope this information is sufficient

Regards
Jai

Srinidhi Prasad - Member Since: Feb 2008
Hi Yogitaa,

Superannuation in simple words known as retirement benefits. Means, once any personnel attains the age of retirement, the employee is known to be in superannuation.

Gratuity is the benefit given to an employee who has served for a minimum of 5 years in an organisation. The gratuity is normally calculated as 15 days salary for each 1 year of service. Eg. If an employee has served for 5 years 6 months, he/she will be getting gratuity for 6 years and if the employee has served for less than 5 years 6 months, then the gratuity will be calculated for 5 years. 15 days salary means only Basic & Da and HRA. Conveyance and other Allowances are not considered.

Thanks,

Best Regards,
Srinidhi Prasad

abhi16march - Member Since: Feb 2008
Dear Sir's

can anybody tell me how a emp can apply for the superannuation benefits after his retirement.

i have seen everytime superannuation is alawys in the total ctc ...if a emp will be leave the organisation then how the individual emp will get ths benefits nd wat is the exact procedure.

looking for the relply
thanks
abhishek

Sanjeev.Himachali - Member Since: Oct 2006
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

Sanjeev.Himachali - Member Since: Oct 2006
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

nitin_suwase - Member Since: Oct 2009
I'm Nitin MBA student from pune university I wnt to information about superannuation (VRS) for the presentation could you help me and e -mail on


thank you,
Nitin Suwase

vikas.phatak - Member Since: Apr 2010
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

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