Basic : 1000
DA : 500
HRA : 400
Others : 1000
Gross Salary : 2900
For PF :
(Basic + DA) * 12% Means : (1000+500) /100* 12 (same from company) and other admn. charges 1.61%
Max upto 6500/-
For ESI :
Gross salary * 1.75%
from emp. salary deduction Means : 2900/100*1.75
from Employer 2900/100*4.25
Max upto 15000/-
for more details see the............
Difference between Gratuity and Superannuation fund:
Superannuation is 15% of basic and gratuity is 4.81% of the basic.
Superannuation can be optional (you can opt in you on hand salary as a special allowance which will be taxable) while gratuity is not.
Superannuation can be claimed whenever you leave the company while Gratuity can only be claimed if you have completed 5 yrs.
Both terms have different meaning and used diferently and therefore should not be confused with each other .
In India , Superannuation is a perquisite extended to employees in various companies as a part of employment conditions generally to the management staff more for retention purpose . It had more significance some years ago as it entailed retiral benefit on attaining age of superannuation - say 58 years as companies in private sectors do not have pension schemes unlike Govenment Sector companies .
The superannuation started getting significance as many multinational companies offered this perquisite which even allows deduction up to 15 % of basic and in combination with PF should not go beyond 27 % as per existing rules under the Income Tax provisions .
The superannuation can be prescribed through LIC or many other private insurance cos. and no. of options may be chosen from the scheme by employees who are members at the time of leaving the company .
Whereas Gratuity is compulsary under the provisions of The payment of Gratuity Act after an employee completes 5 years service with the company . Gratuity becomes payable only on completion of 5 years only .
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 Superannuation can be withdrawn any time ( leaving the company or retiring)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.
The ESI CONTRIBUTION PERIODS ARE -
1. 1st April to 30th Sept
2. 1st October to 31st March
If any employee falls in the ESI Limit (i.e Rs.15000/- gross) during the contribution period, ESI will be deducted till the end of the contribution period, even if his/her salary is increased to above Rs.15000/-
The benefit period is the next contribution period.
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