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super annuation

can any one explain abt the concept of superannuation and who are eligible for it?


 3 Replies

veenzar (Advocate)     28 February 2008

Some facts about Superannuation - a) It is a retiral benefit. b) It is normally computed at 15% of the monthly basic salary. Hence if the basic is Rs.10,000 p.m., the Superannuation contribution will be Rs.1,500 per month. c) The Company opens a Superannuation Fund with an agency like for example - LIC. Monthly contributions are made by the Company on behalf of the eligible employees. (There is no recovery from the employees). d) This Fund is normally invested in Govt. securities / equity to get returns. e) When the employee retires, he/she can normally (based on rules of the Fund), be eligible for 25% of the accumulated fund. f) The remaining is moved to a annuity fund and monthly returns commuted as pension is paid to the employee.

SANJAY DIXIT (Advocate)     02 March 2008

Thanks for the information Dear Veenzar.

partharajagopal (HR)     03 March 2008

Hi This concept like gratuity and mostly applicable for top mgt and middle mgt peoples.it can be calculated from 4-5% basic in a month and deposited in bank in the name of trust and can be given to emps incase of retirement or resignation. regards partha

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