Group Gratuity Scheme
What is Group Gratuity Scheme?
"Ensure the well-being of your employees and meet your obligations under the Payment of Gratuity Act, 1972 with gratuity plans."
Gratuity is one of the vital employee benefits provided by the employers as a statutory obligation under the Payment of Gratuity Act, 1972. Gratuity refers to the sum of money paid by the employers to their employees upon the termination of their service because of retirement, resignation, death, or disablement due to an accident or disease.
In these policies, the investment risk in investment portfolio is borne by the policyholder
Why you should invest in Gratuity Scheme?
The principle aim of gratuity is to ensure that an employee receives adequate benefits at the time of his/her exit from the service so that he/she doesn’t have to face any financial turmoil in the near future. By investing in a gratuity scheme, you can ensure that you have adequate funds ready with you to pay this benefit to your employees as and when the need arises.
Investing in gratuity can be considered as a business expense
Aids in systematic funding of your liabilities
Keeps your cash-flow smooth
Reduces Tax liability
Benefits of Group Gratuity Scheme
You can create a substantial savings corpus due to the returns earned on your investment over the time
You can pay gratuity benefits to your employees without disturbing your cash-flow or working capital
A carefully planned funding strategy for your liabilities may help you reduce the tax bills of your company significantly
The plan offers you the transparency, flexibility, and better control on your investments, based on your risk profile and investment horizon