Group Gratuity
Every growing organization has some financial and legal responsibilities towards its employees. Gratuity is one such significant liability paid to employees after successful 5 years completion in the company. In a way, it is a retention tool encouraging employees to stay in the organization for a longer duration. Every company has to have sufficient funds to fulfill the gratuity needs of their employees at the right time. As employee strength increases, managing gratuity payments become more expensive and unmanageable. Getting an effective gratuity plan is imperative to retain employees.
The accrued gratuity benefit is payable on cessation of employment (either by resignation, retirement or termination) as advised by the Policyholder in terms of the provisions of the Trust Deed and the Rules, subject to the availability of sufficient funds in the policyholder’s account.
Benefits of Group Gratuity:
- The accrued gratuity benefit is payable on cessation of employment (either by resignation, retirement or termination) as advised by the Policyholder in terms of the provisions of the Trust Deed and the Rules, subject to the availability of sufficient funds in the policyholder’s account
- On death of the life insured during the term of the policy while in service before the retirement age, the sum assured, along with the gratuity benefit, under the basic plan is payable, provided the policy is active.
- On retirement of a Member, the Gratuity Benefit will be paid as specified under the scheme.
- Maturity Benefit: On surviving to the date of maturity, the life insured is paid an amount equal to the total amount of premium paid during the term of the contract. The amount will exclude the accident benefit premium and any extra premium, given the policy is active.
- The insurance premium paid towards the Group Gratuity scheme is treated as deductible business expenses to the company.
- Guaranteed interest rate
- Claim settlement on exit as per company rules/gratuity act