Important Points for IC 83 - Group Insurance and Retirement Benefit Schemes Exam
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The employee benefits of a firm/company generally include: A remunerative wage structure which motivates the employees to contribute their maximum worth to the enterprise, Bonus to the employees either on festive occasions or as a reward for their contribution in the high performance of the firm, Social security benefits for employee welfare in the form of provident fund, gratuity, medical facilities, compensation and insurance policies, Different types and number of leave are allowed so that the employees may revitalise themselves and take care of various other obligations, Employees who wish to voluntarily retire from an organisation are provided with several benefits under the voluntary retirement schemes.
The benefits to be provided to the employees are insurable and can conveniently be funded through insurance contracts. Only life insurance can provide capital benefits on premature death.
With the introduction of Chapter IXA and Chapter IXB in the Indian income tax Act 1922, arrangements for funding retirement benefits in India in the form of Provident Fund and Superannuation Fund started in order to take advantage of the available income-tax relief.
Even after making various statutory provisions which enabled the employers to avail of the income tax concessions, all retirement benefits remained voluntary until the passing of the Employees Provident Fund Act, 1952.
The Employees Provident Fund Scheme 1952 enables the employers to pay contributions to the Government fund administered by the Central Board of Trustees appointed by the Government.
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