Ours is an Agrochemical MNC which was taken over from RPG and previously Searle pharma. Since a long time we have a ‘Superannuation Scheme’ wherein we contribute 15% of the employees Basic salary, as superannuation contribution to the LIC Trust – who is incharge of the Superannuation scheme of our organization. Employees who retire or resign after a long service are eligible for 1/3rd amount as withdrawal and 2/3rd amount as pension over period of 5 to 10 years.
The problem started since last two years when the company has decided to incorporate this amount as a part of Salary (i.e. the Cost To Company – CTC) in the Salary package of all the employees. All employees who are joining new are demanding that they are not interested in such schemes and they wish the contribution be a part of the monthly gross or CTC. Few existing employees have also requested to stop the ‘Superannuation-deduction’ and adjust the amount in the CTC to enhance their monthly package.
My request for an Advise from you is
Whether I can stop deducting Superannuation Contribution for the existing employees? Is it necessary for us to show new employment of those employees?
If not then can I reduce the Superannuation contribution from 15% to say 5%?
Can I decide not to deduct this amount for all the new recruits henceforth in the organization?
I have been receiving conflicting advises on the same and I shall be greatly obliged to receive a standard guidance from your side.
Regards
Ketan
The problem started since last two years when the company has decided to incorporate this amount as a part of Salary (i.e. the Cost To Company – CTC) in the Salary package of all the employees. All employees who are joining new are demanding that they are not interested in such schemes and they wish the contribution be a part of the monthly gross or CTC. Few existing employees have also requested to stop the ‘Superannuation-deduction’ and adjust the amount in the CTC to enhance their monthly package.
My request for an Advise from you is
Whether I can stop deducting Superannuation Contribution for the existing employees? Is it necessary for us to show new employment of those employees?
If not then can I reduce the Superannuation contribution from 15% to say 5%?
Can I decide not to deduct this amount for all the new recruits henceforth in the organization?
I have been receiving conflicting advises on the same and I shall be greatly obliged to receive a standard guidance from your side.
Regards
Ketan