Gratuity is a statutory benefit to be provided to an employee as per the Payment of Gratuity Act, 1972. It is a lump sum amount paid out to an employee, upon his exit from employment and fulfilling the criteria prescribed in the Gratuity Act.
These 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.
This can be best achieved by opting to contribute to the ICICI Prudential's Group Gratuity Plan, which helps you meet your statutory liability as an employer.
details
Min group size10 or more members
Plan optionsUnit linked
Min/ Max entry age15/85 years
Min. policy term1 year
Bundled life coverICICI Prudential group gratuity plan provides a flat cover of Rs. 1000 to the employees
Scheme administrationMonthly addition and deletion of members
What are the benefits of funding group gratuity with ICICI Prudential?
Scheme setup assistance - ICICI Prudential shall assist in customizing solutions specific to your needs and adhering to the Gratuity Act.
Manage your investments - ICICI Prudential offers a complete and competitive range of investment options keeping your needs in mind. The investment plans offered by ICICI Prudential are as follows;
Unit linked funds are market linked investments which help you to get good returns and empower you as an employer to decide the asset allocation best suiting their needs.. click for more details.
Dedicated service team - ICICI Prudential understands that service is of utmost importance to maintain a long term sustainable relationship. and hence we have a dedicated group service team which appoints a relationship manager who would be dedicated to service your requirements.
Claim Settlement - ICICI Prudential undertakes to settle claims and payouts within specified turn around time.
Bundled life cover - ICICI Prudential group gratuity plan provides a flat cover of Rs. 1000 to the employees
What tax benefits do I get by funding the gratuity liabilities?*
Employer:
Annual contribution allowed as expenditure/deduction in computing taxable income, up to 8.33% of employees’ salary
Employee:
Gratuity received is exempt from Income tax up to the limit specified and subject to conditions of section 10(10)*Above tax benefits are as per Income Tax Act, 1961 and Income Tax Rules, 1962. Please consult your Legal/ Tax expert for details. ICICI Prudential Life Insurance Company Limited shall not be held responsible in any manner in case you do not get the above stated tax benefits. Please note that the prevailing and applicable tax laws shall be final, conclusive and binding on both the parties.
The employer chooses to put aside monies to meet the gratuity liability. These monies are contributed into ICICI Prudential group gratuity plans, which subsequently earn returns and help grow the funds in line with the gratuity liability. The fund created under the plan is further used to make claim payments on employee exits.
How can I get in touch with ICICI Prudential for further details?
We offer several options for you to buy as per your convenience. Choose from one of the following:
