Gratuity is one of the vital aspects of employee benefits, that helps you retain the best of talent. But with increasing salaries and tenure, gratuity liability might also increase. You can relieve the liability with a comprehensive and effective gratuity plan that can help you reduce business costs and meet the funding needs to make gratuity payments.
Need for Group Gratuity
It is a known fact that the Gratuity Liability tends to increase with time as the salary and the tenure of the employees increases. An employer can pay out the gratuity proceeds from the current revenue (on a PAYGO basis) but this can cause financial strain at times. Thus, a prudent and tax efficient way of meeting Gratuity Liability is to ascertain the Liability, set up a Gratuity Fund and pay contributions as and when required.
- A lump sum fund to the employees or their dependants
- Tax benefits to the employer
- Protection against the risk of death – free flat amount of Rs.1,000 in case of death while in service. The master policy holder has option to choose higher sum assured also.
- Flexibility to invest in various unit linked investment funds
- The option of making / transferring the past service contributions
- Actuarial and administrative support, if required
Statutory payments to employees create a gratuity liability for you as an employer. As an employer, one of your paramount concerns will be availability of sufficient funds to meet your company’s obligation for these gratuity payments. At Emedlife we help you achieve this by offering you the most suitable gratuity products, which helps you meet your statutory liability as an employer.
Talk to us today for securing your financial future at an affordable price and for reliable claims management.
For registration of claims and to learn more about our claims process please contact our dedicated claims team for advice on an incident/claim.
D&O Policy protect company director or officer from legal liability arising out of actual or alleged wrongful acts in managing a company.
- The policy covers a wide range of litigation that could arise from customers, vendors, shareholders, employees.
- In addition to defence cost, it provides cover for :
- Investigation Cost
- Entity Protection against Employment Practice Liability claims
- Outside Entity Directorship cover,etc.