R.N.Khola
Labour Laws & Ir
Jawaidbhai
Insurance Agent
Raj Kumar Hansdah
Shrm, Od, Hrd, Pms
Jvramakrishna356
Manager - Human Resources
Sunilcms
Hr Executive
+10 Others

Thread Started by #poonam.gandhi

Hi All
I am, Poonam Gandhi working for a IT company. We have not paid the gratuity to any employees yet. I am in the process to set up the gratuity fund to have good liquidity, in terms of funds management. Could any of my colleague may help me to implement this in our company.I understand there are schemes framed by the government to set up the gratuity fund. Please post me the deailed process.
Reagrds
Poonam
25th March 2010 From India, Delhi
Hi All
I am, Poonam Gandhi working for a IT company. We have not paid the gratuity to any employees yet. I am in the process to set up the gratuity fund to have good liquidity, in terms of funds management. Could any of my colleague may help me to implement this in our company.I understand there are schemes framed by the government to set up the gratuity fund. Please post me the deailed process.
Reagrds
Poonam
26th March 2010 From India, Delhi
Dear Ms. Poonam,
We are a corporate consultancy organization and can help you in the process of setting up the Gratuity fund and the trust and implement the same.
Kindly let me know your location and the contact details so that we can discuss the matter further.
Please feel free to contact me,
26th March 2010 From India, New Delhi
Dear Poonam
Welcome to CiteHR.com.
I presume yours is a new Company -"We have not paid the gratuity to any employees yet".
If it is a small company; then instead of establishing a Gratuity trust, and going through all the formatlities; it would be convenient and cost-effective to enroll to the Life Insurance Corporation of India's Gratuity Policy. Contact their nearest branch and they will send an executive to explian the scheme, without any obligation.
Warm regards.
26th March 2010 From India, Delhi
Dear Poonam,

We do not know why your management has not made the payment under this Act to any of the employees? In my view you must have gone through section 4A of the Payment of Gratuity Act which relates to compulsory insurance & framing of gratuity fund etc. but Govt. so far has not made this section applicable by issuance of notification. For further clarification you may contact your area Controlling Authority under this Act. I have not come across any scheme of the Govt. regarding setting up of gratuity fund otherwise I must have provided you. Let us wait for others to reply on the subject. Since last one year what I have observed that none of the members have provided the material on framing of this Fund & its utilization. Some of the employers have made arrangement with the LIC to ensure timely payment of Gratuity for which our super Moderator Mr. Raj Kumar has high lighted you. Most of the employers make payment as when it become payable.

Opinion/ comments submitted as requested.

With Regards,
R.N.Khola






26th March 2010 From India, Delhi
Dear Poonam,

We do not know why your management has not made the payment under this Act to any of the employees? In my view you must have gone through section 4A of the Payment of Gratuity Act which relates to compulsory insurance & framing of gratuity fund etc. but Govt. so far has not made this section applicable by issuance of notification. For further clarification you may contact your area Controlling Authority under this Act. I have not come across any scheme of the Govt. regarding setting up of gratuity fund otherwise I must have provided you. Let us wait for others to reply on the subject. Since last one year what I have observed that none of the members have provided the material on framing of this Fund & its utilization. Some of the employers have made arrangement with the LIC to ensure timely payment of Gratuity for which our super Moderator Mr. Raj Kumar has high lighted you. Most of the employers make payment as when it become payable.
Opinion/ comments submitted as requested.

With Regards,
R.N.Khola





27th March 2010 From India, Delhi
Dear Mrs.Poonam,

Recently i had implemented the same in my last company. Just you need to approach lic agent where he will take care all the formalities:

Process: Gratuty Fund Trust formation :-

1. you need to submit the details of employee names along with their doj/Basic&DA accordingly Lic agent will submit the quotes

2. you need to submit the Board Resolution format will be given by the Lic agent

3. you need to submit the trust deed taken in non-judicial paper-format will be given by the lic agent

4. you need to open an account in the name of Gratuty trust with the help of lic agent.

5. For any claim you need to submit the Form-F(nomination form) to Lic(concerned) accordingly they will give the cheque in the name of gratuty trust. that cheque will be presented in the bank and the same amt to be released to the concerned employee.

6. you need to submit the additions&deltions data to Lic accordingly amt will be adjusted in the upcoming financial year.

for any further clarrfications pl, mail me to my official mail id.

Dhanunjaya Rao Addanki

Manager-HR

Abir Infrastructures Pvt. Ltd

Mobile: 09492858523

Email:

Initially data i.e employee names/doj/ will brief the things which i had exprienced recently in this
27th March 2010 From India, Hyderabad
Hello,
Ms Poonam You simply have to call local LIC manager and he will do everything only your management has to decide the name of trusty and finaly signature of trusty, let me know if you are in mumbai I will provide you concern manager name with contant number from Mumbai LIC
27th March 2010 From India, Pune
Hi Poonam,
You can contact with any of the nearest branch of LIC, where you will find separate gratuity cell. You have to submit the list of employees along with their DOJ & DOB to LIC, then they will give you the quotation for GGCA(Group Gratuity Cash Accumulation policy). As per the quotation you have to submit the cheque along with the list of employee and covering letter. Rest all they will explain to you.
Thanks & Rgards,
Biswajit Ghosh

28th March 2010 From India, Mumbai
Dear Poonam
Its pleaseue to introduce us as a Labour law & Tax consultat. Please share the company profile and no. of employee and other details and we would provide an end to end solution for all of ur requirements about fund setup.
Please feel free to contact the undersigned in case of any clarification/help
Thanks & Regards
Laxmikant Saini
09310832563

28th March 2010 From India, Gurgaon
Hi poonam, Its very easy & simple process to have a gratuity fund a/c. You may take up help from LIC agent and consult with a senior Hr person regarding legalities. Thanks & Regards: Priya
28th March 2010 From India, Delhi
Dear Team, Can any one give me a reference of any lic agents who can help me out with gratuity registration under LIC. awating you response
21st July 2010 From India
Hi all I am LIC Agent associated with LIC Group Insurance and available for Delhi, NOIDA, Ghaziabad, Faridabad and Gurgaon. Please contact me I will do the needful Jawaid Alam Azad 9871959159
25th December 2010 From India, Delhi
Hi All, Refer attached recent notification on compulsory gratuity insurance.. warm regards Ramakrishna 9703100700
15th March 2011 From India, Hyderabad

Attached Files
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File Type: pdf AP Compulsory Gratuity Insurance Rule 2011- Notification.pdf (77.5 KB, 331 views)

Thanks for the attachment. I think this is the first Govt. who have made these Rules. Regards, R.N.KHOLA Skylark Associates, Gurgaon (Haryana)
15th March 2011 From India, Delhi
Hi, Is it possible, we being the employer could deduct the Gratuity amount each month from the CTC and set aside the money to be payable at the time on disconnecting of each employees. Thanks
17th March 2011 From India, Delhi
Dear Ms. Poonam,
Technically, Gratuity is an amount that an employer pays to te employees as gratitude for his services. You cannot deduct it from salary but can make it a part of CTC.
This is a contribution by the employer and not a deduction from the employees' salary.
You can always set aside an amount and pay the gratuity as and when due.
However, this way, you might end up in a financial crisis in case of major separations of employees. It is always advisable to invest the funds through a trust or take a policy from LIC so that the liability is well taken care of.
Hope this will help you,
Thanks,
Kind Regards,
Avika Kapoor
Assistant General Manager - Business Development
E-174, Kalkaji, New Delhi-110019
, 7503110322

17th March 2011 From India, New Delhi
Dear Friend,
Can you explain me below point,
1. Is Gratuity Insurance policy is compulsory in Maharashtra?
2. How to maintain fund against Gratuity in establishment account?
3. Is it necessary to take approval from government to maintain fund against gratuity in establishment?
Regards
Shyam
5th August 2011 From India, Mumbai
Hi Ms. Poonam
Gratuity insurance is a package available with insurance service provider.
Many think only lic can give such products. It is not so, any insurer authorised by the IRDA can be engaged for this group gratuity policy.
Main advantage of this policy is that future service gratuity is taken care by the insurance element. for example mr. a has joined in a company at his 20th year. retirement year as per his company rule is 58.
if he dies at 24th year. he would have put only 4 years of service. if there is no group gratuity policy, the company will pay him only 15/26*4*6500 (assumed salary) = 15000, where as if the company is having group gratuity policy then gratuity for him will be settled as( 15/26*38*6500=142500), here rs.15000 is settled from the group gratuity fund and the balance amount is settled from the insurance premium which is being paid annually to the insurer.
thanks
koteeswaran
17th September 2012 From India, Madras
Hi,
I've been working as a faculty in an aided arts and science college since 2007 in a city in Tamilnadu but under self financing department. PF has been deducted from my salary from the next month of my joining. Now I've completed almost 8 years of service and planned to resign the job. When inquired at the college, I was told that the gratuity is payable only after the service period of 10 years and so far this has been the procedure.
Please suggest if I'm eligible to claim the same?
Regards
Lal
11th January 2016 From India
This post is an attempt to give a brief about Impact of increase in Salary and Past Service on Gratuity Payments and requirement of Gratuity Trust Fund to meet .
Gratuity benefits are governed by  "The Payment of Gratuity Act 1972" and paid by the employer to an employee on exit from service after he has rendered continuous service for not less than five years:
 (a) On his superannuation (b) On his resignation (c) On his death or disablement due to injury or disease.
In case of (c) vesting condition of 5 years does not apply.
Liability on account of gratuity experiences sharp increase every year due to the nature of its computation. Apart from an increase in service, an increase in salary also contributes to increase in liability substantially as the benefits are payable on the last drawn salary.
For Example,
Gratuity Liability of an employee of 35 yrs. with basic salary as Rs, 26,000/- and have completed 5 years of Past service as on 31.03.2018 will be :-
 (15/26)*26000*5
= 75,000/-
Case 1
Gratuity liability with Increase of 1 year past service and without any increment in Basic Salary.
Gratuity Liability of an employee of 36 yrs. with basic salary as Rs. 26,000/- and have completed 6 years of Past service as on 31.03.2019 will be :-
 (15/26)*26000*6
= 90,000/-
Case 2
Gratuity liability with Increase of 1 year past service & 5% increment in Basic Salary (i.e. 26000*1.05 = 27300/-)
Gratuity Liability of an employee of 36 yrs with basic salary as Rs. 27,300/- and have completed 6 years of Past service as on 31.03.2019 will be :-
 (15/26)*27300*6 = 94,500/-
Gratuity Liability on retirement in 31.03.2043 with 5% increment in Basic Salary {i.e. 26000*(1.05^25) = 88045/-}
Gratuity Liability of this employee on retirement at age 60 yrs with basic salary as Rs. 88,045/- with 30 years as on 31.03.2043 will be :-
 (15/26)*88045*30 = 15,23,860/-
From above example, it is clear that with a small change of 5.00% in basic salary, increases the gratuity liability by 1.26times in 1 year. Similarly 5% increase over next 25 yrs in Basic Salary will increase the gratuity liability 20.32 times which is payable on 31.03.2018 . Hence it becomes mandatory for employer to start investing in Gratuity Fund with consistent growth and insulated from market risks.
To know more about : -
1. Steps Involved in creating a Gratuity Fund,
2. How to use Gratuity Fund as Retention Tool for curbing the attrition rate,
3. Quantum of Income Tax Benefits of creating Gratuity Fund,
4. Steps Involved  Approval of Gratuity Trust Fund from competent Authority,
5. Critical issues & Features of Group Gratuity Schemes of Insurers
3rd February 2019 From India, Delhi
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