Benevolent Fund:
Objective:
To safeguard our employee's family after he or she passes away.
Process:
Every employee will contribute a minimum of ₹10 or more monthly, and management will also make an equal contribution. Upon the death of an employee, an amount of ₹1,00,000 or more, as fixed by the committee, would be paid from the fund to the nominee of the deceased employee within 30 days of the employee's death.
Scope:
It covers all employees except those covered under the life security plan or top management.
Applicability:
Applicable to all natural and accidental deaths except suicide.
Source of Funds:
Contributions would be directly deducted from the salary and remitted to the ABC Ltd. Employees' Benevolent Fund Scheme or trust.
Validity + Grace Period:
If no such circumstance occurs to our employee within one year, the collected fund is used for "Employee Recreation" activities or as decided by the panel members.
Panel Decision:
A committee is appointed to certify the death of an employee.
IT exemption can be obtained under Section 80G by getting approval for exemption from the Commissioner of Income Tax for the trust or Benevolent Fund Scheme.