Group Gratuity
Gratuity is not just a statutory obligation but also a very important tool today to retain and attract talented employees. A comprehensive and effective gratuity plan can reduce your business cost and corporate tax. It not only manages your retirement liability effectively but also helps you release resources for your core business activities.
Provision for payment towards the Group Gratuity Act becomes mandatory under following circumstances:
- When employees retire, resign or separate from the company after completion of 5 or more years of services.
- When the employee is disabled or dies while in employment 5 year completion is not applicable.
- 10 or more employees in an organization make it mandatory for the corporate to comply with the Gratuity Act. It is mandatory for organizations to have Insurance for the liability towards the gratuity under the act