Talking about human resource and its management will probably still be a hot topic for the next few years before AI technology and machines dominate the industry. The management of human resource then is not only a matter of recruitment and quality improvement, but also related to the compensation given after the retirement of the human resource. In this case, there is a term known as superannuation funds.
Most of you who are in human resource department staff or company managers, of course, already know this phrase more or less. Superannuation funds can be defined as legal entities that manage and run programs that promise superannuation benefits.
In addition, superannuation funds can also be interpreted as workers’ rights in the form of income earned after working for a certain period of time and entering the superannuation age. Both definitions are correct, depending on what context is used. First for the institutional context and second for the objective context in the form of nominal money to which workers are entitled.
In this article, we will discuss a little about the benefits of superannuation funds, types and calculations, as well as tax obligations. Of course, as an employer you must also understand this concept because the superannuation fund itself is the right of the employees as regulated in the applicable law.
In simple terms, the benefit of superannuation security is to support the family life or the employee concerned. After the employee enters the superannuation age or in certain conditions that require early superannuation. Generally, superannuation will be given regularly every month to the party concerned at a certain nominal value. These funds are continuously distributed until the employee or heir dies.
There are several types of superannuation funds based on agreed conditions. Usually this situation will be stated by the employer in a contract letter or the like.
Benefits of Normal Superannuation
It is an age-based type of superannuation fund, varying between 55 and 60 years according to the existing agreement. This superannuation will be given if the employee has been in the program for 3 years or more. The calculation is as follows.
Years of Service x Awards of Superannuation Benefits x Superannuation Base Income
= Superannuation Service Rewards x Superannuation Base Income
Benefits of Accelerated Superannuation
This type of superannuation is an accelerated employee superannuation in a condition when your company is reducing the number of employees. Just like Normal Superannuation, employees who can receive this superannuation are employees who have participated in the program for 3 years or more. The calculation is as follows.
Present Value x Superannuation Awards x Superannuation Base Income
Benefits of Invalidity Superannuation
This type is given to employees or workers who have had an accident so that they are considered unable to work at hokiku88 as before. If the employee has not fulfilled the minimum membership, then there is no membership period limit that will apply. To calculate the Superannuation Service Period, the formula is: (Normal retirement age – Age when you stop working due to invalidity) + Working period until you stop.