Exploring Gratuity Plan Options for 700 Employees: What Alternatives to LIC Do You Recommend?

Respected Sirs,

We would like to implement a Gratuity Plan for our employees (around 700). Kindly suggest additional options besides LIC for this plan. Your prompt guidance is greatly appreciated.

Regards,
Jyoti Negi

Hi Jyoti Negi,
Apart from LIC plan – there are two options which depends on the employee strength and years of operations;
1. Provision in the books : A gratuity liability is created in the liabilities in the Balance sheet and this is based on the actuarial valuation by the Actuarial.
2. Have your own trust to manage gratuity like Birlas, Tata's have their own gratuity trust etc.
Hence at the end of the day, you have to weigh these options take a call.
Regards,
Rajat

Dear Sir,

Thank you for your response. I would like to inquire about the gratuity and whether it can be transferred to an insurance company such as Reliance or Tata AIG. Currently, our gratuity is managed by LIC, but the management is considering a change. Your assistance on this matter would be greatly appreciated.

Best regards,
Jyoti Negi