What is Group Gratuity Insurance?

Group Gratuity Insurance is a long-term benefit plan that helps employers meet their statutory obligations under the Gratuity Act. It provides employees with a lump-sum payment at the time of their retirement, resignation, or in case of death, based on the years of service and their last drawn salary.

Key Features of Group Gratuity Insurance

• Retirement Security: Provides employees with a financial safety net when they retire, helping them maintain their lifestyle.
• Tax Efficiency: Employers can claim tax deductions on gratuity contributions made to the fund. Employees also benefit from tax exemptions, subject to applicable limits.
• Flexible Funding Options: Employers can choose between a funded or non-funded gratuity plan based on their requirements.
• Automatic Coverage: Coverage is provided to all eligible employees as part of the group, without the need for individual underwriting.
• Lump-Sum Payment: The policy ensures that employees receive a lump sum upon retirement, termination, or death, which is calculated based on their tenure and salary.
• Portability: Employees can transfer the gratuity balance to their new employer if they change jobs, making the benefit portable.

Who Needs Group Gratuity Insurance?

• Large and Small Organizations: Regardless of size, every company can benefit from offering a gratuity scheme to its employees.
• Companies with Statutory Obligations: Businesses that are required to provide gratuity benefits as per the law.
• Employees with Long-Term Service: Ideal for organizations with a stable workforce that aims to reward loyalty and service.

Benefits of Group Gratuity Insurance

• Employer Benefits:
  1. Helps manage gratuity liabilities in a structured and cost-effective manner.
  2. Ensures compliance with legal requirements related to employee benefits.
• Employee Benefits:
  1. Provides financial security at the time of retirement or exit from the organization.
  2. Boosts employee morale and retention by offering a valuable benefit.

Why Choose Us for Group Gratuity Insurance?

• Expert Guidance: We assist you in designing a customized gratuity plan that suits your business needs.
• Cost-Effective Solutions: Flexible and affordable options that help you manage your gratuity liability.
• Seamless Administration: We handle the administrative complexity and ensure smooth implementation.
• Compliance and Tax Efficiency: We ensure that your gratuity plan complies with local regulations and provides tax benefits to both employers and employees.