what is beneficial for employees,to provide with superannuation benifits or give the amount as part of the salary?
From India, Mumbai
Dear Zupin, Had you understood the concept of superannuation benefits in its proper perspective, this question would not have arisen at all.
From India, Salem
Respected sir,
my question was with reference to my observation that there are certain employers who block money of employees with monthly pay of barely 18-20 k.please note superannuation is part of ctc.
for high salaried employees the question doesnt arise
is it worth blocking this money or provide with more take home salary?

From India, Mumbai
Dear Zubin,
The tone of your original question would certainly compel a retired, senior citizen like me living as independently and happily as before, to give such an answer only. Now, your further questions substantiate my answer statement for the simple reason the concept of CTC that is in vogue in certain countries like India and some countries in the African continent only is primarily to woo the job-seekers.
Time and again the concept of "C.T.C" has been explained in this forum and categorically stated by many members that all the components represented in the CTC do not form part of the take home salary of the employee as CTC is only a mere projected value of the over all expenses incurred by the employer per employee in a year. "Superannuation" in the realm of employment is a future event contingent upon normal termination of employment on reaching a particular age fixed in the contract of employment by the employee coupled with the completion of a minimum period of service. It may comprise of an one time lump sum payment called gratuity at the time of termination and/or a periodical payment like pension after termination. The employer has to create a fund for this purpose and contribute to such a future fund every year in respect of the employee on actuarial basis. Therefore, it is an inevitable current expense incurred by the employer and therefore chargeable to the cost of employment.
Coming again to the point of right understanding of the concept of wages/salary/remuneration payable to a prospective employee in the salary negotiation stage, though he may be wooed by the employer with the grandeur and enormity of CTC, the employee should be more vigilant about what would come to his hand every month only. The employee should not forget that the monthly salary coming to his hand is the actual value of his current employability and the others projected in the CTC are both statutory fringe benefits as well as incentivising his retention in the long run.

From India, Salem

CTC means cost to company.
It does not mean what you will get as take home pay or net pay.
PF paid by company is shown in CTC but this you will get only on retirement or exit from company and if it is not transferred to new PF a/c (conditions apply)
Certain cuts frumpy like employee share of PF is for enforcing some sort of savings for future.
Remember Warren buffet says spend after saving first and not save after spending.
If employee share of PF is not deducted, take home pay will increase no doubt but will get spent.Govt in its wisdom wants savings for future and therefore compels PF cuttings.
So try to understand basic concepts of CTC,EPF,ESICetc.
That will help you understand and also save for rainy days.Building a retirement corpus is vital as everyone grows old and retires.Living in the present is good but sharp eye for future is needed.

From India, Pune
Dear Mr Zubin, The Dictionary meaning of Superannuation-"Send in to Retirement with a Pension"
Normally Superannuation benefit is extended to Executive & Managerial cadre.The Company will form Super Annuation Trust &take a Policy with Insurance Company & Premium is Paid annually.
I have been getting my super annuation Pension regularly from my previous Employment.1/3 amount was refunded immediately after relieving from service.Besides Lump sum Money will be paid to Nominee after Death of member.Please remeber tagline of LIC
Zindagike saath bhi, Zindagike baad bhi

From India, New Delhi

Mr Zubin,
I want to add to my earlier comment.
A company pays its staff as per market standards, skills and financial position.All companies normally work on a going concern basis and work with an eye to future.All well run companies having a successful business model does some planning for employee benefits in the present and plan for retirement/superannuation benefits.
Insurance policies,PF funds,Gratuity are all ways to reward employees for service and are paid on exit or retirement etc.
Just to increase pay in hand presently no tweaking is possible in such benefits, most of which is mandated by law.
So if you want to give more cash in hand to employees consider a pay revision in planned manner taking revenue inflow into a/c among other things which influence your business or product.

From India, Pune

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