Gratuity is the sum the employer rewards employees for rendering services to the company for a specific duration. As per Section 4-A of the 1972 Act of the Payment of Gratuity Act, employers are required to mandatorily avail of gratuity insurance to pay gratuity to their employees. The Act applies to all business establishments including […]
Group Gratuity
What is Gratuity Act 1972 – Payment Rules and Calculation?
Gratuity Act 1972 Before the implementation of gratuity payment, there was really no incentive for the employee to provide efficient work to expand and develop the company’s products. The Payment of Gratuity Act of 1972 provided a silver lining for employees so that they could earn more and optimize their personal efforts in making a […]
What is the formula for premium calculation of group gratuity policy?
Gratuity is given by the employer to the employee in lieu of the services rendered during the period of employment. Here, we’ll get to learn the criteria and formula for the premium calculation of the Group Gratuity policy. Usually pays the gratuity at the time of retirement but can also pay earlier, provided the below […]
Different types of Group Gratuity Insurance Plan
An employer may take a group gratuity plan with an insurance provider. The gratuity paid by the company is based on the terms of the group insurance scheme. The different types of group gratuity insurance plans are below: Unit Linked Plan: The Unit Linked Plan is a group policy with an indefinite policy term. Being […]
Statutory requirements for payment of group gratuity
One of the monetary incentives for staying in an organization long enough is the expectation of group gratuity payment. This is a lumpsum amount, a payment for services rendered over a period of time. Requirements for gratuity payment There are certain statutory requirements that an organization has to adhere to for the payment of gratuity […]
What is Force Majeure in Group Gratuity Schemes, when does it apply?
The concept of Force majeure excuses one or all of the parties from liabilities and obligations under a group gratuity insurance policy. A force majeure situation arises when there has been: An occurrence of extraordinary events An occurrence of a specified event Occurrence of events that are beyond parties’ control A force majeure condition means […]
How Does the Group Gratuity Policy Benefits Your Institution?
Organizations which has a minimum number of 10 employees since the past financial year becomes liable to pay gratuity. Employers pay gratuity to workers who have completed five years of continuous service upon retirement or job departure. The Gratuity Act, 1972 mandates employers to provide a lump sum amount as gratuity. There are many benefits […]
Why should you take a Group Gratuity Insurance Plan?
Group Gratuity Insurance Plan
What are the various charges applicable to Unit Linked Group Gratuity Plans?
The purpose of a Unit Linked Group Gratuity Plans is to provide the employees with a lump sum benefit on their exit. This benefit is called gratuity. A Unit Linked Group Gratuity Plan is a retirement benefit plan that combines a gratuity benefit with investment options in the stock market. The payouts are based on […]