How Are Companies Including Gratuity and Superannuation in Pay Packages?

Hi All,

Please let me know how other companies are adding Gratuity and Superannuation into pay packages.

Regards, P.S. Phani.

4.81% of the basic will be gratuity. However, there is no idea about superannuation. Kindly, could anyone provide comments on superannuation, please.

Anupama

Superannuation is a choice of the person. If he wants to have his superannuation deducted from his salary every month, that can be arranged. However, if he chooses to take the amount instead, the following percentages apply:
- Up to Deputy Manager: 9%
- Above that: 10% of basic.

Regards,
Abhi

Dear all,

As rightly said, Gratuity is 4.81%. Superannuation is at the choice of the company as well as the employee, with a maximum limit of 15% of basic pay. Another limit is that if the contribution towards superannuation is more than one lakh per annum, it becomes taxable.

KKT

Dear Anu,

Gratuity is not payable on LTA. In fact, it is payable only on Basic Pay and Dearness Allowance/Pay if DA is being paid by the company.

KKT