Supplementary allowance given to employees as an additional benefit. Call it a salary or allowance, one and same thing - taxable income.
Not inclusion is wrong. Approch court for relief.
Superannuation pension
DearTeam, I had retired from a MNC as an Officer after 32 years of service. In 1994 my company was merged with a MNC .After the merger MNC has issued a harmonisation letter. In that letter company mentioned that superannuation pension is 15% Basic salary and supplementary salary. My parent company during my appointment issued a letter stated that superannuation is 15% of consolidated salary.After my retirement MNC has considered 15% of Basic salary only for superannuation pension. In my salary slip supplementary allowance is there but no supplementary salary. What is the difference between supplementary salary and supplementary allowance ? Am I eligible for 15 % of supplementary allowance for my pension calculation ? May I go for legally against to company? Thanks and regards, Pavithran Tv.
Asked 6 years ago in Labour
5 Answers
The supplementary allowance is not a statutory right as per the law like PF or gratuity, it's discretion of the company to provide the same. You can file case if some allowance is not paid to you by company
Supplementary allowance in India is not statutory and given to employees as an additional benefit.As per Income Tax rule this is fully taxable. Supplementary allowance is not included in pf wage,bonus wage,gratuity wage,Esic wage etc.. It can go down... depends on company's monetary benefits policy.
supplemental wages are exactly what they sound like: supplemental pay or other compensation given to an employee in addition to their regular wages which includes many types of employee remuneration as supplemental wages, including:
- Bonuses
- Awards
- Back pay
- Taxable fringe benefits
- Retroactive wage increases
- Nonaccountable expense allowances
- Nondeductible moving expenses
- Prizes
- Commissions
- Severance pay
- Accumulated sick leave
- Some overtime
As you can see, supplemental wages aren’t all that uncommon. You might already be using them without even knowing it. But it’s how you pay and, ultimately, how you withhold taxes for those supplemental wages when compared to regular wages that makes all the difference.
Since there was no supplementary salary given to you, you will be entitled for what has been assured to you at the time of retirement, which if found to be discriminated, you may approach the company with a representation and try to solve the issues amicably, if not then yo can resort to legal action on this to claim your rights.
A consolidated salary is the aum total of all allowances that you were getting before superannuation. The MNC has removed other heads and has then calculated the salary based upon lesser heads.
Pension and other benefits cannot be changed to the disadvantage of the employee. You should pursue this legally.
1. Supplementary allowances are your supplementary salary there is no difference in both terms.
2. Yes you are eligible for pension At 15% of supplementary allowances
3. If they doesnt give pension as per rule then you should definitely file suit against company.
