Types of Fringe Benefits

Old Age & Retirement Benefits

By:Shobhit Shukla (2012MB50)
Shailendra Singh Rajput (2012MB56)
Shubham Dev Verma (2012MB47)
Shubham Kumar (2012MB27)

Table of Contents
Old age and retirement benefits
Provident fund
Pension
Deposit linked insurance
Medical benefits
Gratuity
References

Old age and retirement benefits

Provident fund
Pension
Deposit linked insurance
Medical benefits
Gratuity

Provident Fund
Provident Fund is one of the main platforms of savings in
India for nearly all working people.
Meant for Economic Welfare of the employees
Comes under Employees Provident Fund Act, 1952.
The Employees Provident Fund Organisation (EPFO), is a
statutory body of the Indian Government that administers
Provident Fund.

EPF Act
Employees in all factories under Factories Act, 1948 are
covered.
Employees on attaining 15 years of membership are
eligible for Provident Fund.
Organisations pay the PF amount with interest to employee
or his dependants.

Deposit & Withdrawal

PF is taken as 12% of the basic wages, dearness allowance
and retaining allowance, payable to employees per month.
The rate is fixed at 10% in the case of any sick industrial
company
A member can withdraw up to 90% of the amount of
provident fund after attaining the age of 54 years of age

Employee Provident Fund Benefits

EPF scheme benefits employees in following essential needs:
Retirement
Medical Care
Housing
Family obligation
Education of Children

Pension
The GOI introduced a scheme of Employees
Pension Scheme for the purpose of providing
Family Pension and Life Insurance benefits to the
employees of various establishments to which the
Act is applicable.
The Act was amended in 1971 when Family Pension
fund was introduced in the Act.
Both the employer and the employee contribution
to this fund.

Employees Family Pension Scheme, 1971, Provides for a Family Pension to the family of deceased employee as per
the following rates:

Contd.
This scheme also provides for the payment of a lump sum
amount of Rs 4000 to an employee on his retirement as
retirement benefit and a lump sum amount of Rs 2000 in the
event of death of an employee as life insurance benefits.

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DEPOSIT LINKED INSURANCE

Employee deposit linked insurance scheme was
introduced in 1976 under the P.F Act, 1952.
Under this, if a member of the Employees
Provident fund dies while in service, his
dependents will be paid an additional amount
equal to average balance during the last 3 yrs in
his account.
Amount should not be less than Rs 1000, and
maximum amount of benefits is Rs 10,000.
The minimum amount to be maintained is revised

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DEPOSIT LINKED INSURANCE

Sr
no
.

1.
2.
3.
4.

GRADE PAY

Minimum Balance to
be maintained

Pay Band - 2 (Rs 9300-34.800) and above and drawing

Rs 25,000
GP of Rs 4800 p.m or more
Pay Band -2 (Rs 9300-34800) and drawing GP of Rs 4200
Rs 15,000
p.m or more but less than Rs 4,800
Pay Band-2, Pay Band - 1 (Rs 4440-7440) and drawing
Rs 10,000
GP of Rs 1400 p.m or more but less than Rs 4,200
Pay Band - 1S (Rs 4440-7440) and drawing GP of rs 1300
Rs 6,000
p.m but less than Rs 1,400

Additional amount payable shall not exceed Rs

60,000/-

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MEDICAL BENEFITS
Medical Benefits are provided to retired employees
and their family members.
Organizations pay medical expenses through
appropriate insurance policy.
These benefits creates a feeling of permanent
attachment with organization, to the employees
even when they are no longer in service.

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Gratuity
Benefit payable to an employee on the termination
of his employment after he has rendered continuous
service for not less than five years,
a) on his superannuation, or
b) on his retirement or resignation, or
c) on his death or disablement due to accident or
disease

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Contd.
The gratuity is covered under the Payment of
Gratuity Act, 1972.
This act provides for compulsory payment by
management of Factories , plantations, mines, Oil
fields , Railways, Shops and other establishments
employing 10 or more employees.

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Payment of gratuity
Payable at the rate of 15 days wages
For each year of completed service
On part thereof in excess of six months
Maximum limit 10 lakhs

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REFRENCES
http://postalstaffcorner.blogspot.in/2009/08/deposit-linked
-insurance-scheme-in-gpf.html
http://www.citehr.com/148249-types-fringe-benefits-provide
nt-fund.html
Human resource management V.S.P Rao

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Thank you

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