It is a retirement benefit given to all the employees by the organization. The scheme is governed by John Deere Super Annuation Trust and the funds are governed & managed by Life Insurance Corporation. The monthly contribution to LIC is 15% of the basic pay of eligible employees and the contribution by the funds is invested in various securities. Interest on contribution is credited to the members account.
The cash benefit can be availed only after completing 15 years of service with John Deere India Private Limited and attaining 48 years age. At the time of retirement, employee receives one-third of the total accumulated contributions in account and the balance two-third portion is monthly pension from LIC as a tax free benefit.
At the time of resignation, the employee has the option of transfer the accumulated balance to the new employer’s super annuation scheme. Super Annuation Scheme is voluntary in nature and all eligible employees get a one-time option to enter the scheme or to withdraw from it.
Provident Fund is a compulsory retirement defined contribution benefit given to all employees. The scheme is governed by Employees Provident Fund Organization. The contribution is 12% of basic from both the employee and employer in accordance with the provisions of the Employees Provident Funds & Miscellaneous Provision Act 1952.
12% of the basic pay of employee’s share and 3.67% of basic of employer’s share gets accumulated to Provident Fund whereas 8.33% of basic of employer’s share gets accumulated to Pension Fund.
At the time of resignation, PF can be withdraw or transferred to the new organization. If the amount is withdrawn before completion of 5 years of service, then the amount is taxable as per income tax rules.
The amount contributed towards PF becomes non-taxable under Section 80C of the Income Tax (IT) Act.
Voluntary Provident Fund
As the name suggest, this is an added advantage over and above normal compulsory Provident Fund. The additional contribution is made by the employee in this case. Employees have the option of availing voluntary PF and maximum contribution under this benefit is INR 6500/- per month which is over and above the 12% mandated by the government. The additional voluntary contributions have all the benefits of PF, except that the company won’t contribute an equal amount. The interest rate is equal to the rate of interest for PF and the withdrawal on retirement is tax-free.
It is the part of salary received by an employee from his/her employer in gratitude for the services offered by the employee in the company. Gratuity is a defined benefit plan and is one of the many retirement benefits offered by the employer to the employee upon leaving his job. As per Sec 10 (10) of Income Tax Act, Gratuity is paid when an employee completes 5 or more years of full time service with the employer. At John Deere India, Gratuity is paid to employee who completes minimum service as 4 years and 240 days of continuous service.
Gratuity is calculated on last drawn basic salary.
Group Medical Cover
In our day to day lives, we are exposed to many risks associated either with accidents or illnesses. And with the ever increasing costs associated with hospitalization, it can mean a drain on one’s precious savings.
At John Deere employees and their family members are extended a medical insurance cover for expenses related to hospitalization due to illness, disease or injury. John Deere has tied up with a premium insurance supplier to work out a specifically tailored and employee friendly policy that fit their needs.
A group health insurance plan provides cover to all the members in a single policy. To list a few advantages this has meant for employees:
- Pre-existing disease cover
- Cashless claims across network hospitals
- Pre and post natal expenses
- Coverage effective day one of onboarding John Deere
Group Personal Accident
In an increasingly competitive business scenario every organization has to prepare for the unexpected. It applies not just to the area you operate in, but also to your employees. After all, no one can afford to lose people, whether to illness, accidents or demotivation.
This insurance provides compensation and/or payment up to a financial fixed limit as assigned by the company to the insured person or his legal personal representative, if the insured person is faced with death or disablement due to an accident. The cover is worldwide but payment of claim can only be made in India and in Indian Rupees only.
The policy covers:
- Accidental death - Covers the insured in case of loss of life in an Accident
- Permanent disablement - Pays a benefit if the insured is permanently disabled in an Accident.
Temporary Total disablement:
Pays a weekly benefit if an Accident causes disablement that prevents the insured person from engaging in or giving attention to his/her usual occupation
Group Term Life Insurance
It is a pure term group insurance which ensures financial security for employee’s family members in the event of unfortunate death of the employee due to natural or accidental causes.
John Deere India covers all its employees under the base cover which is calculated at a percentage allocation of the total fixed pay.
Voluntary Term Life Insurance
As the name suggests, the benefit is voluntary in nature. At John Deere the employee has a choice to enhance the cover by a few times more times of the total fixed pay by paying nominal premium cost under the same policy. All the policy conditions remain same as base cover.