What is Gratuity?

“Ensure the well-being of your employees and meet your obligations under the Payment of Gratuity Act, 1972 with ABSLI’s 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.

ABSLI’s gratuity Schemes are designed to help you in meeting your statutory obligations towards your employees, without affecting your cash-flow.

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*

ABSLI’s Gratuity Scheme Products

ABSLI Group CapSecure Plan

A non-linked non-participating fund based group plan where the employer is the master policyholder while the employees are the beneficiaries.

  • Guaranteed amount in policy account
  • Returns are declared quarterly
  • Traditional non-linked product

ABSLI Group Capital Assured Traditional Plan

A non-linked, non-participating fund based group plan where the employer can earn interest on the investments, which is credited to the policy at the end of every financial year.

  • Guaranteed amount in policy account
  • Returns are declared annually
  • Traditional non-linked product

ABSLI Group Unit Linked Plan

A non-participating unit linked plan through which the employers can accumulate funds required for paying gratuity liabilities.

  • Potential to earn good returns
  • Multiple fund options
  • Greater transparency on investments

ABSLI Group Value Plus Plan

A non-participating unit linked plan where the employer can choose to either self-manage or allow us to manage his/her investment portfolio to earn maximum returns.

  • Customised options to invest your money
  • Option to choose between market cycle or self-managed
  • Greater transparency on investments

Benefits of Investing in Gratuity Scheme

A part of your investment will be used to provide life insurance cover to your employees

By investing in this scheme, you will also get investment advisory services from ABSLI, which can help you in managing your investment portfolio

Such plans allow you to make systematic investments to accumulate retiral funds for your employees

The plans offer you the transparency, flexibility, and better control on your investments, based on your risk profile and investment horizon

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.1

Tips to Select a Gratuity Scheme

 

  • Portfolio Quality

    A gratuity Scheme allows you to invest in top-quality funds so that you can gain maximum returns on your investments. With ABSLI’s gratuity Scheme, you’ll have multiple investment options to choose from, as per your risk appetite and investment horizon.

  • Diversified Portfolio

    You will be able to create a diversified investment portfolio to ensure the right blend of high returns and capital preservation. ABSLI’s ULIP plans provide diversified portfolios with optimum return averaging.

  • Inflation Beating Returns

    Look out for a gratuity scheme which invests in funds which have the capability to provide inflation-beating returns.

  • Flexibility

    Opt for a plan which offers flexibility in choosing the schemes for your investment. With ABSLI, you can choose to invest in traditional as well as unit-linked gratuity Scheme as per your needs.

Frequently Asked Questions

  • Is payment of gratuity to an employee optional or mandatory?

    In India, it is mandatory for all employers with more than 10 employees to pay gratuity benefits under the Payment of Gratuity Act, 1972.

  • Do I need to pay gratuity benefits to all my employees?

    Yes, you need to pay gratuity benefits to all your employees, given that he or she has given you five continuous years of service.

  • How much contribution should I make into a gratuity scheme?

    There is no limit on the amount of money that you can invest in a gratuity scheme. However, it is recommended that you should invest in a scientific manner to create a corpus which should be enough to pay gratuity to your current and future employees.

  • How to calculate gratuity of an employee?

    Gratuity amount for an employee can be calculated by using a simple formula – Last drawn Salary x No. of completed years in service x 15/26. Online gratuity calculators can also help you in calculating gratuity amount for your employees.

Why Choose ABSLI’s Gratuity Scheme?

Our gratuity schemes are designed to provide you a peace of mind with:

  • Consistent Top Quartile returns across products
  • Investment managers with 19+ years of experience
  • High quality portfolio with the right mix of debt and equity
  • Complete transparency and flexibility to manage your portfolio

Know Your Funds

Check out the performance of funds, their NAV, and much more here.

GROUP SERVICES

1 Tax benefits are subject to changes in the tax laws, please consult your tax advisor for more details

Disclaimer:

The Trade Logo “Aditya Birla Capital” Displayed Above Is Owned By ADITYA BIRLA MANAGEMENT CORPORATION PRIVATE LIMITED (Trademark Owner) And Used By ADITYA BIRLA SUN LIFE INSURANCE COMPANY LIMITED (ABSLI) under the License.”

ABSLI Group CapSecure Plan and ABSLI Group Capital Assured Traditional Plan is underwritten by Aditya Birla Sun Life Insurance Company Limited (ABSLI). This is a non-linked, non-participating fund based group plan. The amount of Contributions less payment in respect of member exit plus quarterly interest addition are reflected in the Policy Account Value and is guaranteed at all times. ABSLI’s liability is limited to the Policy Account Value plus the Sum Assured. ABSLI reserves the right to recover levies such as the GST levied by the authorities on insurance transactions. If there be any additional levies, they too will be recovered from you. Please read the brochure carefully before concluding the sale. For further details please refer to the policy contract. Tax benefits subject to changes in the tax laws. For more details on risk factors terms and conditions, please read the sales brochure carefully before concluding the sale. Please refer the Exclusions Section in the sales brochure for details on Exclusions and the Terms & Conditions.

ABSLI Group Unit Linked plan and ABSLI Group value plus plan are underwritten by Aditya Birla Sun Life Insurance Company Limited (ABSLI). This is a non-participating unit linked plan, Aditya Birla Sun Life Insurance and ABSLI Group Unit Linked Plan are only the names of the Company and Policy respectively and do not in any way indicate their quality, future prospects or returns. The names of the funds offered in this plan do not in any way indicate their quality, future prospects or returns. The charges are guaranteed throughout the term of the policy unless specifically mentioned and subject to IRDAI approval. The value of the investment fund reflects the value of the underlying investments. These investments are subject to market risks and change in fundamentals such as tax rates etc affecting the investment portfolio. The premium paid in unit linked life insurance policies are subject to investment risk associated with capital markets and the unit price of the units may go up or down based on the performance of investment fund and factors influencing the capital market and the policyholder is responsible for his/her decisions. There is no guarantee or assurance of returns from the investment funds. ABSLI reserves the right to recover levies such as the service tax levied by the authorities on insurance transactions. If there be any additional levies, they too will be recovered from you. For further details please refer to the policy contract. Tax benefits are subject to changes in the tax laws. Insurance is the subject matter of the solicitation. Please refer the Exclusions Section in the sales brochure for details on Exclusions and the Terms & Conditions.

Linked Life Insurance products are different from the traditional insurance products and are subject to the risk factors. The premium paid in Unit Linked Life Insurance policies are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of the fund and factors’ influencing the capital market and the insured is responsible for his or her decision. Aditya Birla Sun Life Insurance Company Limited is only the name of the Insurance Company and ABSLI Group Value Plus plan and ABSLI Group Unit linked plan are only name of the unit linked life insurance contract and funds and does not in any way indicate the quality of the contract, its future prospects or returns. Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document. The various funds offered under this contract are the names of the funds and do not any way indicate the quality of these plans, their future prospects and returns .The Past performance of the Unit linked fund(s) of the company is not necessarily indicative of the future performance of any of these Unit linked fund(s).

Registered Office: One World Centre Tower 1, 16th Floor, Jupiter Mill Compound, 841, Senapati Bapat Marg, Elphinstone Road, Mumbai - 400013. Call Centre: 1-800-270-7000 www.adityabirlasunlifeinsurance.com IRDAI Reg. No. 109 | CIN: U99999MH2000PLC128110 ADV/11/20-21/1608 UIN: 109N084V03 | UIN: 109N070V02 | UIN: 109L036V04 | UIN: 109L055V04