Dear Colleagues,
We are excited to announce the launch of the Welfare Fund, a savings scheme designed to help you secure your financial future.
What is the Welfare Fund?
The Welfare Fund is a long-term savings plan where you, the employee, and the company contribute a portion of your salary each month. These contributions are invested in secure and diverse financial instruments, allowing your savings to grow over time.
Benefits for You:
- Retirement Savings: The Welfare Fund provides a valuable nest egg for your retirement. You can access your accumulated funds and accrued halal profit upon retirement, providing you with financial security in your later years.
- Financial Discipline: The regular contributions encourage financial discipline and help you build a strong savings habit.
- Peace of Mind: Knowing you have a growing fund for the future can bring peace of mind and allow you to focus on other aspects of your life.
How Does it Work?
- Employee Contribution: You will contribute 10 % of your monthly salary to the Welfare Fund.
- Company Contribution: Company will match your contribution, effectively doubling your savings.
- Investments: Your contributions will be invested in different areas chosen for their security and potential for growth.
- Access to Funds: You can access a portion of your accumulated funds under certain circumstances.
We believe the Welfare Fund is a valuable tool to help you secure your financial future. We encourage you to consider taking advantage of this opportunity to save for your retirement and other long-term goals.
- This fund will be effective from 01 February 2024.
- Deduction for this fund will commence from January 2024 salary.
- Every month 10% will be hold from the employee’s basic salary for the welfare fund.
- Funds can only be withdrawal after annual anniversary
- at the end of each annual anniversary (for current employees only.):
- amount hold during that period will be doubled
- profit will be given on the amount remaining from last annual anniversary.
- Withdrawal Procedure (after annual anniversary)
- Maximum of 25% can be withdrawn on 1 month notice
- or Maximum of 100% can be withdrawn on 4 months notice.
- Colleagues can confirm their balance from accounts department
Example:
Mr XYZ joined on Nov 23 with basic salary of Rs 20,000/-
First Salary will be given to him in Dec 23
Now, DEC is his annual anniversary date on each year
| Month | Salary | Contribution | Locked Amount | Can be withdrawn |
| Dec 23 | 20,000 | – | – | |
| Jan 24 | 20,000 | – | – | |
| Feb 24 | 20,000 | 2,000 | 2,000 | Starting Date of funds |
| Mar 24 | 20,000 + 5000(over time) = 25,000 | 2,000 | 4,000 | |
| Apr 24 | 18000 | 1,800 | 5,800 | |
| May 24 | 22,000 (10% increment) | 2,200 | 8,000 | |
| Jun – Nov 24 | 22,000 x 6 | 2,200 x 6 | 21,200 | |
| Dec 24 | 24, 200 (10% increment) | 2420 | 2420 | 21,200 x 2 = 42,400 |
| Jan 25 | 24, 200 + 5000 (over time) | 2,420 | 4,840 | 42,400 (requested 25% withdrawal) |
| Feb 25 | 23,000 | 2,300 | 7,140 | 31,800 (after 25% withdrawal) |
| Mar – Nov 25 | 24, 200 x 9 | 2,420 x 9 | 28,920 | 31,800 |
| Dec 25 | 30,000 | 3,000 | 3,000 | 31,800 + profit on 31,800 = 34,980 + (28,920 x 2) = 92,820 |
| Jan – Dec 26 | Avg x 12 = 432,000 | 38,880 | 3,600 | on Dec 26 92,820 + profit on 92,820 = 102,102 + (38,200 x 2) = 178,502 |
Profit will be given the fluctuation of business conditions.
Note: The company reserves the right to modify certain terms or conditions without prior notice
