Dear All, Can someone provide us information as subjected " Diffrence b/w Gratutity and superannuation" Regards, Vikas Chopra
From India, Delhi
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From India, Delhi
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The payment of a gratuity to employees upon cessation of service is a statutory obligation imposed on employers by the Payment of Gratuity Act, 1972. In terms of the Act, gratuity is payable to an employee on the termination of his employment after he has rendered continuous service for not less than 5 years: (a) on his superannuation or (b) on his retirement or resignation or (c) on his death or disablement due to accident or disease. Completion of 5 years is not, however, necessary for the payment of gratuity in case of death or disablement. The gratuity is to be calculated at the rate of 25/26th of a month's wages for every completed year of service or part thereof in excess of six months, subject to a maximum of Rs. 3,50,000. However, if the employees of any establishment are in enjoyment of gratuity calculated at a higher rate, such higher rates would apply in their case.
Superannuation is an employee's voluntary contribution, and 15% of his basic salary will be deducted for the same. Whenever he leaves the particular organization, he can withdraw the amount.
From India, Madras
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31Superannuation is an employee's voluntary contribution, and 15% of his basic salary will be deducted for the same. Whenever he leaves the particular organization, he can withdraw the amount.
From India, Madras
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Mr. Gaurava has provided the following information regarding the difference between Superannuation and Gratuity as per the Indian Accounting Standard 15 or AS 15 (Rev.).
1. Superannuation is a defined contribution plan.
2. Gratuity is a defined benefit plan.
1. Superannuation involves the employee's contribution.
2. Gratuity involves the employer's contribution.
1. An employee can withdraw 1/3 of the Superannuation Fund as tax-free income, and with the remaining 2/3, they have to purchase an annuity plan (pension plan).
2. 100% of the Gratuity amount is Income Tax-Free and can be received in one go.
1. Superannuation is not a statute.
2. Gratuity is statutory.
1. Superannuation can be withdrawn at any time (upon leaving the company or retiring).
2. Gratuity can be received only after completing 5 years of continuous service.
From India, Madras
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1. Superannuation is a defined contribution plan.
2. Gratuity is a defined benefit plan.
1. Superannuation involves the employee's contribution.
2. Gratuity involves the employer's contribution.
1. An employee can withdraw 1/3 of the Superannuation Fund as tax-free income, and with the remaining 2/3, they have to purchase an annuity plan (pension plan).
2. 100% of the Gratuity amount is Income Tax-Free and can be received in one go.
1. Superannuation is not a statute.
2. Gratuity is statutory.
1. Superannuation can be withdrawn at any time (upon leaving the company or retiring).
2. Gratuity can be received only after completing 5 years of continuous service.
From India, Madras
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GRATUITY for continous good service but only after 5 yrs SUPERANNUATION is at the time of retirement.
From India, Tiruchchirappalli
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From India, Tiruchchirappalli
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Dear Vikas,
Superannuation is retirement upon completing the prescribed age of retirement (say 60 years of age) and receiving all the designated retirement benefits, including retirement gratuity.
On the other hand, gratuity includes service gratuity or retirement/death gratuity. Retirement gratuity is payable upon retirement after reaching the prescribed age of retirement (superannuation, voluntary, or compulsory retirement, as the case may be).
Death gratuity is payable upon the death of an employee based on the number of completed six-monthly periods of service before the employee's death.
Similarly, service gratuity is payable to an employee upon leaving service or termination from service, provided they have rendered not less than 5 years of minimum qualifying service in the organization.
Hope this clarifies your query.
PS Dhingra
Vigilance & Transformation Management Consultant
Dhingra Group of Management & Educational Consultants
New Delhi
From India, Delhi
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Superannuation is retirement upon completing the prescribed age of retirement (say 60 years of age) and receiving all the designated retirement benefits, including retirement gratuity.
On the other hand, gratuity includes service gratuity or retirement/death gratuity. Retirement gratuity is payable upon retirement after reaching the prescribed age of retirement (superannuation, voluntary, or compulsory retirement, as the case may be).
Death gratuity is payable upon the death of an employee based on the number of completed six-monthly periods of service before the employee's death.
Similarly, service gratuity is payable to an employee upon leaving service or termination from service, provided they have rendered not less than 5 years of minimum qualifying service in the organization.
Hope this clarifies your query.
PS Dhingra
Vigilance & Transformation Management Consultant
Dhingra Group of Management & Educational Consultants
New Delhi
From India, Delhi
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• Meaning of the word Superannuation is to retire upon attaining retirement age.
• Gratuity is one of the statutory benefits applicable on superannuation (retirement) and in case of some other events like resignation, death etc. Gratuity is well defined in the Payment of Gratuity Act, and fellow members have also provided information on it.
• Provident Fund and Pension are also statutory superannuation benefits.
• Only some companies have Superannuation Benefit Schemes, apart from statutory superannuation benefits. Since they are non-statutory benefits, different companies have different schemes for this, depending on their policies and capacity to pay.
Thanks & Regards
From India, Pune
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• Gratuity is one of the statutory benefits applicable on superannuation (retirement) and in case of some other events like resignation, death etc. Gratuity is well defined in the Payment of Gratuity Act, and fellow members have also provided information on it.
• Provident Fund and Pension are also statutory superannuation benefits.
• Only some companies have Superannuation Benefit Schemes, apart from statutory superannuation benefits. Since they are non-statutory benefits, different companies have different schemes for this, depending on their policies and capacity to pay.
Thanks & Regards
From India, Pune
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Dear,
Superannuation is a terminal benefit even before completion of 5 years of service. Superannuation may be voluntary or contributions from the management as part of CTC. Gratuity is a statutory social security benefit, but superannuation benefits are not the same.
With Regards,
N. Kannabiran
From India, Madras
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Superannuation is a terminal benefit even before completion of 5 years of service. Superannuation may be voluntary or contributions from the management as part of CTC. Gratuity is a statutory social security benefit, but superannuation benefits are not the same.
With Regards,
N. Kannabiran
From India, Madras
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Understanding Superannuation Contributions
Superannuation is not deducted from the salary; it is the contribution made by the company to a fund like LIC. There are two options:
1. Either it can be taken in cash with the monthly salary.
2. You can become a member and take it after the required number of years of service.
From India, Delhi
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Superannuation is not deducted from the salary; it is the contribution made by the company to a fund like LIC. There are two options:
1. Either it can be taken in cash with the monthly salary.
2. You can become a member and take it after the required number of years of service.
From India, Delhi
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