Enforced from 10th January 2024, Karnataka Compulsory Gratuity Insurance Rules, 2024 bring forth critical compliance requirements for employers. This article delves into the intricacies of first-time and regular compliance, emphasizing the significance of setting up a Gratuity Trust and obtaining insurance within a stringent timeframe. Key observations shed light on industry dynamics, urging employers to meet deadlines and maintain policy continuity. Our recommendations provide practical insights, emphasizing early action to navigate the intricate Gratuity Trust Formation process. This guide aims to equip employers with essential knowledge for seamless adherence to the new rules.
|Date of Applicability
|First-Time Compliance Requirement
|✔ Set up a Gratuity Trust with a Trust PAN + CIT Acknowledgement (pre-requisite) *
✔ Secure a Gratuity Insurance Policy within 60 days (i.e., on or before 10th March 2024)
✔ Register with the Controlling Authority within 30 days of obtaining Insurance
|✔ Exercise due diligence & make all Premium payments and renew the policy periodically
✔ Intimate Controlling Authority within 15 days from the date of renewal
✔ Notify the Controlling Authority of any changes in employees insured or insurance policies or any other pertinent information
✔ Value the Gratuity obligation basis Actuarial Valuation certificate as per AS 15 (Revised)/Ind AS 19 periodically to assess the funding levels
*No Insurance company currently sells a Group Gratuity product without a Gratuity Trust
The Gratuity Trust Formation process takes a minimum of 15 days if all documents are in order and hence, start early to avoid last-minute hiccups and delays.
To know more about our fees, our expertise, and our delivery process, reach us at email@example.com or call us at +91-9867075522