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The Karnataka Compulsory Gratuity Insurance Rules, 2024

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 […]

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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 […]

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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 […]

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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 […]

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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 […]

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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 […]

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