Group Gratuity Policy
Group Gratuity Policy is an employee benefit plan provided by employers to their employees as part of their statutory retirement benefits package. It is a fund set up by the employer to provide lump-sum payments to employees upon their retirement, resignation, or death, as a token of appreciation for their service and contribution to the organization. Group Gratuity policies are typically funded through regular contributions made by the employer to a trust fund or insurance company.
Add-On
Early Retirement Benefits - Employees receive gratuity payments upon early retirement before the normal retirement age, subject to certain conditions specified in the policy.
Disability Benefits - Provides gratuity payments to employees who become permanently disabled and are unable to continue working.
Flexible Payment Options - Offers flexibility in the payment of gratuity amounts, allowing employees to choose between lump-sum payments, annuity payments, or a combination of both, based on their individual financial needs and preferences.
Exclusions
1. Employees are required to complete a certain number of years of service with the employer before becoming entitled to receive the full gratuity amount (as defined in Gratuity Act 1972)
2. Employees terminated for cause or misconduct may forfeit their right to receive gratuity payments under the policy, as per the terms and conditions specified in the policy document.
3. Employees who are not enrolled or covered under the group gratuity plan may not be entitled to receive gratuity payments upon retirement, resignation, or death.
4. Failure by the employer to make regular contributions to the gratuity fund or insurance company may result in delays or non-payment of gratuity benefits to employees.