Insurance For Liability Management

Why is it important to plan for employee liabilities such as gratuity and leave encashment? Liability for your employees' gratuity or leave encashment is often the trickiest thing to forecast accurately and manage well.

While doing so you may come across some pertinent questions: What is my true employee liability? How do I manage this liability? Am I maximizing my potential tax benefit? Am I rewarding my most valuable employees adequately? Am I matching long term liabilities with my investment strategy? Are my assets professionally managed?

Since such liability increases with time, it may become difficult to pay the benefit over a longer period of time. It is therefore beneficial that you as an employer set up a separate fund from which this benefit may be paid out. Employee benefit plans provided by employers to their employees also play an important role in increasing employee loyalty and productivity.

A comprehensive employee liability plan can help you reduce both business costs and corporate tax*

* Tax laws are subject to change from time to time.

What is gratuity?

Gratuity is a statutory benefit paid to employees who have worked in an organization for at least 5 years. Under the Payment of Gratuity Act, 1972, your employees are eligible for 15 days of pay for each completed year of service. You can structure a gratuity benefit such that it is higher than statutory requirements. Gratuity, by nature is a medium to long-term liability of the employer and accordingly an appropriate medium to long-term investment strategy should be adopted by the trustees to match assets and liabilities

What is the IndiaFirst Employee Benefit Plan?

Organizations work with and exist only because of their employees. No matter what your area of work, the value that individual employees bring to your organization cannot be under estimated.

Our helps you to invest the funds set aside to cover your employee liabilities such as Gratuity and Leave Encashment into market linked investments. This plan offers a life cover for all your employees, securing their families against uncertainties of life. It is a unit linked non participating group plan that helps you optimize your investment returns by choosing between four funds across asset classes.

With IndiaFirst Employee Benefit Plan , you can now ensure that your employees receive the benefits they deserve.