01 March 2013
Can employer deduct superannuation fund contribution from employee's salary?As far as my knowledge is concerned this is not a mandatory contribution and the contribution should come from the employer's end to the extent of 15% of basic salary.pls let me know whether this is a prudent practice or not ?
01 March 2013
Yes, it is not a mandatory scheme. These contributions are made by the employer for employee’s benefit and employer contribution to the extent of Rs.100, 000 per year is exempt from tax.
Generally the contributions to fund are made by employer only and cost is shown in employee’s CTC (cost to company). I believe that in your case also it is part of your CTC and they are not showing it as recovery in your pay slip.
Employee at his option may also choose to contribute to the scheme, in this case it is called contributory scheme. You can ask your employer to stop your contribution if this is the case and you do not wish to contribute.
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