ABSLI Gratuity Scheme is designed to help employers meet their obligations under the Payment of Gratuity Act, 1972, ensuring that employees receive their due benefits without impacting the company’s cash flow.
What is Gratuity?
Gratuity is a financial benefit paid by employers to employees upon termination of their service due to retirement, resignation, death, or disablement caused by accident or disease. It serves as a lump sum payment to reward employees for their long service.
Why Invest in Gratuity Scheme?
- Statutory Compliance: Ensures compliance with the Payment of Gratuity Act, 1972, meeting legal obligations.
- Business Expense: Considered a business expense, aiding in systematic funding of employee benefits.
- Smooth Cash Flow: Helps maintain cash flow by setting aside funds for future gratuity payments.
- Tax Benefits: Potential reduction in tax liability.
Key Features:
- Investment Risk: The investment risk is borne by the policyholder, allowing for greater control over returns.
- Investment Options: Offers multiple investment options to align with risk appetite and investment goals.
- Diversified Portfolio: Provides the opportunity to create a diversified investment portfolio for optimal returns.
- Inflation Protection: Aims to offer returns that beat inflation, ensuring real value preservation.
Benefits of ABSLI Gratuity Scheme:
- Systematic Funding: Helps in planning and systematically funding future gratuity liabilities.
- Cash Flow Management: Avoids sudden financial strain by preparing funds in advance.
- Tax Efficiency: Reduces tax liability by considering gratuity payments as business expenses.
Tips to Select a Gratuity Scheme:
- Portfolio Quality: Choose schemes that invest in high-quality funds to maximize returns.
- Diversification: Opt for schemes offering diversified portfolios to balance risk and returns.
- Inflation Beating Returns: Look for schemes that provide returns above the inflation rate.
- Flexibility: Select plans that offer flexibility in investment options, including traditional and unit-linked schemes.
For more details and personalized advice, consult with our representatives or refer to the scheme brochures available.