Is Superannuation Still Relevant in Today's Salary Packages? Seeking Advice for Shipping Industry Trends

Dear all,

We have superannuation as a part of the salary for Managers and above grades in my organization. Both the employee and employer contribute towards it on a monthly basis at 15%. However, we are planning to revamp this scheme and adjust the amount to provide employees with the maximum net take-home/more disposable income.

Please advise on the following:

1. Do companies in the current trend offer superannuation as a component, or is it an outdated part of the salary package?
2. What would be the most feasible component of salary for us to replace the superannuation component without increasing the taxable income for the employees?
3. What are the current trends in components of salary, especially in the shipping industry or logistics industry, since I belong to the same?

Please assist me.

Regards,
Nayana

In the normal course, only the employer contributes 15% to the superannuation scheme, and no amount is deducted from the employees' salary. It is a part of CTC (i.e., it is in addition to the take-home salary) that is used as a retention tool by companies as the amount of superannuation can be claimed by an employee after putting in a minimum number of years of service. Companies do give employees a choice to take cash in lieu of the superannuation contribution, but the same is fully taxable for the employees.

I hope this helps you.

Thanks & Regards,
Avika

Dear Avika,

Thank you. However, we want to stick with this component to increase the net disposable income in the hands of the employee. I do not see many organizations offering this as a part of the salary package. Can we implement this? Are there any statutory regulations that we need to consider?

Regards,
Nayana

We are planning to implement a superannuation policy in our organization. Can anybody provide me with the guidelines to do that? It would be great if somebody could share the superannuation policy that is already implemented in his/her company.

Regards,
Vandana