In these policies, the investment risk in investment portfolio is borne by the policyholder

What is Leave Encashment?

“Accumulate funds required to fulfil your leave encashment liabilities with ABSLI’s Leave Encashment Scheme”

Many employers entitle their employees to take various types of leaves such as Privilege Leaves, Casual Leaves, Sick Leaves etc. In case these leaves are not taken by an employee during a year, it gets accumulated in his/her Leave Account and many organisations allow these unused leaves to be encashed by the employees at the time of his/her death/resignation/termination.

ABSLI’s Leave Encashment Scheme are designed to help you accumulate the funds required to pay leave encashment amount to your employees at the time of their exit from the service.

In these policies, the investment risk in investment portfolio is borne by the policyholder

Why fund Leave Encashment?

By investing in a Leave Encashment Scheme, you can ensure that you have adequate funds to pay your employees, without disturbing your cashflow.

  • Accumulation of funds without disturbing your cashflow
  • Hassle-free discharge of leave encashment liabilities
  • Keeps your employee funds safe

ABSLI’s Leave Encashment 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 amount1 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.

  • Returns are declared annually
  • Traditional non-linked product
  • Guaranteed amount1 in policy account

ABSLI Group Unit Linked Plan

It is a fund-based group linked product through which the employers can accumulate funds required for paying leave encashment liabilities.

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

ABSLI Group Value Plus Plan

Another fund-based, non-participating unit-linked group gratuity scheme 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
  • Greater transparency on investments
  • Option to choose between market cycle or self-managed

Benefits of funding Leave Encashment

This solution allows an employer to fulfil leave encashment liabilities without adversely affecting his/her cash-flow and working capital.

This solution allows an employer to fulfil leave encashment liabilities without adversely affecting his/her cash-flow and working capital.

A part of the investment made by an employer into a leave encashment solution is used to provide life insurance cover to his/her employees.

By investing in this solution, an employer can not only accumulate funds for paying employee benefits but also gain high returns on them in form of interest or capital appreciation.

Tips to Choose the Right Leave Encashment Plan

 

  • Portfolio quality

    A leave encashment scheme allows you to invest in top-quality funds so that you can gain maximum returns on your investment. With ABSLI’s Leave Encashment plans, you’ll have multiple fund options to invest in, as per your risk appetite and investment horizon.

  • Inflation Beating Returns

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

  • Diversified portfolio

    You should be able to create a diversified investment portfolio to ensure right blend of high returns and capital preservation. ABSLI’s fund portfolios are diversified across Sovereign Guaranteed Securities, Fixed Income Securities, Large Cap Equities, and highly liquid Money market Instruments and Collateralized borrowing and lending obligation.

  • Flexibility

    Opt for a plan which offer flexibility in choosing the schemes for your investment. With ABSLI, you can choose to invest in traditional as well as unit-linked gratuity plans as per your needs. Also, you can choose to invest in one pooled account for all employees or in different accounts.

FAQs

  • What is meant by Leave Encashment?

    Employees are entitled to avail various types of leaves during their years of service. If not availed, these leaves can be encashed at the time of exit from the service. This concept is known as leave encashment.

  • Is it mandatory for employers to offer leave encashment to employees?

    Though it’s not mandatory for employers to offer leave encashment to their employees, it’s a method deployed by them to keep their employees motivated and strengthen employer-employee relationship.

  • Can I invest in multiple Leave Encashment Policies?

    Yes. You can invest in multiple leave encashment scheme from ABSLI to diversify your portfolio and create a substantial corpus to fulfil your obligations towards your employees.

  • How is leave encashment amount calculated?

    There is no fixed rule to calculate the leave encashment amount for employees. It depends on the employer’s rules or policies. Usually, the average basic salary of an employee and dearness allowance is taken into consideration while calculating leave encashment.

  • What is the minimum amount which I can invest in a Leave Encashment scheme?

    It depends upon the plan option chosen by you. Usually, the minimum contribution allowed towards ABSLI’s leave encashment plans starts from Rs. 5,000 per year and there is no cap on maximum contribution which you can make.

Why Choose ABSLI’s Leave Encashment Schemes?

Our Leave Encashment Schemes are designed to provide you a peace of mind with:

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

Know Your Funds

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

GROUP SERVICES

1 Provided all premiums are paid

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 are 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. 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.

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 Indiabulls 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/11/20-21/1610 UIN: 109N084V03 | UIN: 109N070V02 | UIN: 109L036V04 | UIN: 109L055V04