Dear All,
Can anyone guide me how to caculate Superannuation and if Employees leave the organisation , how much he will get as superannuation amount.
2. If Employee leave the Organisation , how much he will get as PF Amount , can employee withdraw full PF amount ( 12% Employees and 12% Employers ). If yes what would be the Tax and Interest. If Not then what is the mode of PF Payment.
Regards,
Aradhana
Can anyone guide me how to caculate Superannuation and if Employees leave the organisation , how much he will get as superannuation amount.
2. If Employee leave the Organisation , how much he will get as PF Amount , can employee withdraw full PF amount ( 12% Employees and 12% Employers ). If yes what would be the Tax and Interest. If Not then what is the mode of PF Payment.
Regards,
Aradhana
An employee getting superannuated will be paid as per the policy of the company. If no superannuation policy exists, then he is eligible only for Gratuity provided he has at least 5 years of service with the organisation. Gratuity will be equal to 15 days salary for every completed year of service and any fraction of year exceeding six months shall be rounded to the next higher figure. Salary for the calculation means the last salary drawn. However, if due to any reason he was on loss of pay leave and could not get his full pay, an average pay or pay which would have been paid had he worked in all the days shall be taken as salary.
In addition to the above, an employee will get PF benefits which will include 12% of his share plus 3.67% of employer's share with interest. If he has put in more than 10 years service, he will not get withdrawal benefit of the rest 8.33% of employer's share but he will be eligible for monthly pension from EPFO.
Regards,
Madhu.T.K
From India, Kannur
4193In addition to the above, an employee will get PF benefits which will include 12% of his share plus 3.67% of employer's share with interest. If he has put in more than 10 years service, he will not get withdrawal benefit of the rest 8.33% of employer's share but he will be eligible for monthly pension from EPFO.
Regards,
Madhu.T.K
From India, Kannur
Dear Ardhana,
Madhu sir absolutely correct, but for ur reference i have attached a doc on superannuation.
However it is retirement benfit given to employees by the employer. Normally the company has a link with agencies like LIC superannuation fund, when their contrubution are paid.
The company usually pay 15% of basic wages as superannuation contribution. There is no contribution from employee. It can be paid (15% to 27%), if m not wrong.
The contribution is invested by the fund in various securities as per investment pattern prescribed.
Int. on inverstment is credited to member a/c. Normally the rate of in. is equal to the PF interest rate.
On attaining the retirement age, the member is eligible to take 25% of the balance available in hi/her a/c as tax free benefit.
balance 75% is put in annuity fund & the agency LIC will pay the member a monthly/ quartely/ preiodically returns on the option of excercise by the member.
This income is taxable.
In case of resignation of employee, the employee has the option to transfer his amount to the new employer. If the new employer does not have a superannuation scheme, then the employee can withdrawal the amount subject to deduction of tax and approval of Income tax deptt. Or retain the amont in the fund till supperannuation age.
If i miss somehing, treat me as another imperfect human being.
Regards
Vipin
From India, New Delhi
Madhu sir absolutely correct, but for ur reference i have attached a doc on superannuation.
However it is retirement benfit given to employees by the employer. Normally the company has a link with agencies like LIC superannuation fund, when their contrubution are paid.
The company usually pay 15% of basic wages as superannuation contribution. There is no contribution from employee. It can be paid (15% to 27%), if m not wrong.
The contribution is invested by the fund in various securities as per investment pattern prescribed.
Int. on inverstment is credited to member a/c. Normally the rate of in. is equal to the PF interest rate.
On attaining the retirement age, the member is eligible to take 25% of the balance available in hi/her a/c as tax free benefit.
balance 75% is put in annuity fund & the agency LIC will pay the member a monthly/ quartely/ preiodically returns on the option of excercise by the member.
This income is taxable.
In case of resignation of employee, the employee has the option to transfer his amount to the new employer. If the new employer does not have a superannuation scheme, then the employee can withdrawal the amount subject to deduction of tax and approval of Income tax deptt. Or retain the amont in the fund till supperannuation age.
If i miss somehing, treat me as another imperfect human being.
Regards
Vipin
From India, New Delhi
Dear Mr. Vipin
do you mean to say if the superannuation is mentioned in the increment letter and person has resigned i will have to pay the superannuation amount or i can say no to person.
what is legal ?
if i have to pay him then do i have to follow the below formula
e.g. Last Basic x 12 x 15%
if not then please provide the right formula.
Thanks in advance
Raj
From India
do you mean to say if the superannuation is mentioned in the increment letter and person has resigned i will have to pay the superannuation amount or i can say no to person.
what is legal ?
if i have to pay him then do i have to follow the below formula
e.g. Last Basic x 12 x 15%
if not then please provide the right formula.
Thanks in advance
Raj
From India
sir , i am a student of HR . Can you tell me the basic difference between superannuation and retirement.
From India, Ranchi
From India, Ranchi
I was covered under supeannuation for 5 years. Since I resigned, the past employer says that I am not eligible to claim the superannuation benefits accrued on my account. Is it legally tenable?
From India, Lucknow
From India, Lucknow
Legally you are eligible for gratuity only since you have worked only for 5 years. The superannuation fund is an arrangement by the employer to pay the employee an amount at the time of his leaving the organisation after attaining the age of superannuation as provided in the standing orders of the organisation.
Regards,
Madhu.T.K
From India, Kannur
Regards,
Madhu.T.K
From India, Kannur
Plz Help,
If any Employee who was getting PF earlier but, as he has completed 60 years of age he had got started Superannuation befit with promotion & stopped his PF.. just to know can he go for PF money withdrawal...
Employee is still continuing the service with same organisation..
Thanks
From India, Suratgarh
If any Employee who was getting PF earlier but, as he has completed 60 years of age he had got started Superannuation befit with promotion & stopped his PF.. just to know can he go for PF money withdrawal...
Employee is still continuing the service with same organisation..
Thanks
From India, Suratgarh
Under Provident Fund no age limit for contribution has been specified. Therefore, while in service he can not stop contribution to PF on the ground that he has reached the age of 60 years. He should continue to contribute to PF and the employer should also contribute with a difference that the employer's share of 12% should be fully remitted in PF account without dividing it as 8.33% to pension Fund and the remaining 3.67% only to PF.
Madhu.T.K
From India, Kannur
Madhu.T.K
From India, Kannur
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
PF guidleines for Pension fund.pdf
PF-Know Employees Provident Fund-CHART-L-4. doc