Superannuation (India)

Superannuation is a retirement benefit provided by employers in India at their discretion.

The employer can open a superannuation benefit fund with approved insurance companies. Employers contribute 15 percent of the employee’s basic salary and dearness allowance.

Changes to the superannuation contribution can be made in these situations:

  • Change on Pay Rate (Active Primary Work Assignment)
  • Change on Current Employee Pay Element (defined at Basis of Contribution Setup)
  • Change on the Basis of Contribution Setup

Contribution calculations

Calculating the basis of contribution applies only to resource records where India is specified as the Nationality Country and Home Country. These tasks must be completed to create the components (such as basic salary and dearness allowance) which are the basis of the contribution. Their calculations determine the amount that Benefits will use for the calculation of the amount of the employer contribution to the superannuation fund.
  • Create the Basis of Contribution Setup: Use this procedure to specify which Other Amount field is used to populate the amount to be used by the Benefits module as the basis of contribution for the superannuation retirement benefit.
  • Create the Calculate Basis of Contribution: Use this procedure to specify Superannuation for the basis of contribution calculation.
Note: 
If the resource record indicates India as the Nationality Country and Home Country but these conditions exist, the Other Amount will not be populated or updated, and an error log is created:
  • Current Employee Pay Element record does not match the Pay Element at Basis of Contribution Setup
  • Current Employee Pay Element record that matches the Pay Element at Basis of Contribution Setup is inactive
  • Current Employee Pay Element record matches the Pay Element at Basis of Contribution Setup but the date range is not within the Basis of Contribution Setup

System process

The system processes the superannuation contribution using these steps:

  1. The system locates the resource records in which Nationality Country and Home Country is India.
  2. The system pulls the values from the components specified on the basis of contribution record for superannuation that was specified on Basis of Contribution Setup and that matches the effective date that was specified on Calculate Basis of Contribution, and it populates the Other Amount field that was specified for superannuation.
  3. Benefits uses the Other Amount field value to determine the superannuation contribution:Annual Amount Pay Rate + Annual Amounts of Employee Pay Element(s)
  4. The calculate contribution is charged to the deduction code.
  5. The contribution is processed according to the appropriate benefit plan.
  6. After the employee is enrolled in the superannuation benefit plan, a corresponding Employee Deduction Export Record is created.