Group Gratuity
Let us understand first what is gratuity and is gratuity taxable? Gratuity payment is made by the employer as a mark of recognition of the service completed by the employee to the company. Gratuity is a statutory benefit to be provided to an employee as per the Payment of Gratuity Act, 1972. It is a lump sum amount paid out to an employee, upon his exit from employment and fulfilling the criteria prescribed in the Gratuity Act.
These statutory payments to employees create a gratuity liability for you as an employer. As an employer, one of your paramount concerns will be the availability of sufficient funds to meet your company’s obligation for these gratuity payments. Our company offers service to Group Gratuity Plan to enable employers to meet their gratuity liability in a very simple and efficient manner. Group Gratuity Plan also ensures the highest level of safety for the total amount and stability in future contributions. The purpose of Gratuity Plan is to provide the employees a lump sum benefit called gratuity after they have put in the minimum required years of service as specified in the Group Gratuity Scheme Rules on their exit from service due to retirement, permanent total disablement whilst in service, death whilst in service due to accident or natural causes, and resignation/termination from service. However, the minimum required year of service shall not apply in case of death and disablement of the employee due to accident or natural causes.
- Multiple Investment Options
There is a choice of multiple funds with a flexible investment pattern and a choice of more than 5 fund options. - Switching Option
While you have chosen a fund option, you have the flexibility of switching between our various funds at any time. Switching between funds is allowed depending upon your requirements. We allow unlimited switches free of cost every year. - Contribution Redirection
The contributions can be redirected for investments into fund/s of your choice and need not adhere to the initial investment pattern. We allow unlimited redirection requests free of cost. - Transparency
Portfolio disclosure of the funds is done on a quarterly basis. This enables you to achieve better fund management with transparency in charges, investments & returns, periodic statements, internet access & NAV based returns. - Tax Benefit
Tax benefits are as per the provisions of the Income Tax Act, 1961. Tax laws are subject to change. - Expert Management
In house fund management team. - Savings in manpower cost as gratuity funds management and paperwork is done by the Insurer.
- The benefit of ‘rupee cost averaging’ on account of periodic inflow of gratuity contributions into the funds.
- Life protection for workers.
- Apart from Gratuity benefit, employees are entitled to life protection coverage that will be payable to their families in the unfortunate event of their death.
- Market-linked returns and long-term investment growth.
- Investing your gratuity fund in a unit-linked investment portfolio exposes you to a variety of market instruments. A gratuity plan like this enables you to reward your talented and loyal employees without putting financial stress on your core business in the long run.
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