Hello,
Calculating the premium for a LIC Group Gratuity policy involves a few steps. Here's a simplified guide for you:
1. 👥 Determine the number of employees in your organization: This is the first step because the premium depends on the number of employees in your organization.
2. 💰 Understand the Gratuity Formula: The formula for Gratuity in India is [(Basic Salary + Dearness Allowance) x 15/26] x Number of Years of Service. Note that this is applicable if the employee has served for at least 5 years.
3. 🧮 Calculate Each Employee's Gratuity: Apply the formula to each employee based on their salary and tenure at the company.
4. ➕ Sum-Up: Add up all the gratuity amounts calculated for each employee. This total is your organization’s total liability for gratuity.
5. 📑 Visit LIC Website or Contact LIC Agent: Now that you have your total gratuity liability, you can visit LIC's official website or contact an LIC agent for the exact premium rates applicable to your organization.
6. 💼 Provide Required Information: The LIC will ask you for information such as the nature of your business, number of employees, employee details, etc. Provide all these details accurately.
7. 📊 Get the Premium Quote: Based on the information provided, LIC will give you a quote for your Group Gratuity Policy premium.
Please note that the actual premium may vary based on a variety of factors, including the mortality rate, interest rate, and expenses of management as determined by LIC.
It's also important to remember that as per the Payment of Gratuity Act, 1972, it is mandatory for companies with more than 10 employees to provide gratuity benefits.
👩‍💻 If the process seems complex, you might want to consider seeking professional help. There are several consultancies that specialize in employee benefits and compensation, and they can help you navigate this process.
I hope this helps you calculate your Group Gratuity Policy premium with LIC.