How is LIC gratuity calculated?
The formula is: (15 * Your last drawn salary * the working tenure) / 30. For example, you have a basic salary of Rs 30,000. You have rendered continuous service of 7 years and the employer is not covered under the Gratuity Act. Gratuity Amount = (15 * 30,000 * 7) / 30 = Rs 1,05,000.
What is LIC gratuity?
New Group Gratuity Cash Accumulation Plan offered by LIC is a non-participating, non-linked, fund-based variable insurance policy. Contributions are paid by the policyholder each year to secure the gratuity benefit in order to provide life cover benefit, according to the rules of the policy.
Do LIC agents get gratuity?
Gratuity admissible shall be at the eligible rate for each qualifying year for the first 15 qualifying years and at half the rate for subsequent 10 qualifying years. Maximum gratuity payable shall not exceed Rs 300000. 4. Gratuity is payable to an Agent, or his nominees or heirs.
What is gratuity life insurance?
Gratuity is a compulsory benefit to be provided to employees as per the Gratuity Act, 1972. It is a lump sum amount paid out to employees, once they are no longer a part of the company. An employee is eligible for payment of gratuity only if he or she fulfills the conditions specified under the Gratuity Act.
What is 26 gratuity calculation?
Gratuity calculation for monthly rated employees For calculating the per day wage of the employee, the monthly wage (last drawn Basic + Dearness Allowance) is divided by 26 and the result is multiplied by 15 x the number of years of service; i.e. Gratuity = (Basic + DA) x 15/26 x number of years.
Is gratuity deducted from salary?
After having served your employer for five years or more you become entitled to a payment called “gratuity”. Companies usually deduct 4.81% of your basic plus dearness allowance towards gratuity payment. This 4.81% is computed as (15/26)/12. Effectively, it is half a month’s salary on a base of a year’s salary.”
How can I get gratuity?
Calculation of Gratuity Total Gratuity Payable = (Last Drawn Monthly Salary) x (15/26) x (Number of years of service completed). For example, if you joined service in 2013 and resigned in 2018 with a monthly salary of Rs. 50,000 (in 2015), your gratuity will be calculated as follows: – (15/26* Rs. 50,000)*5 = Rs.
What is the target of LIC agent?
LIC Agent Target to getting Renewal Commission Agent, Who has been terminated under clause regulation 16. ( Physically or mentally incapacity for carrying function of agent) has fulfilled MBG for at least 2 years since appointment and 12 different lives in force on a date immediately prior to termination.
What is the commission of LIC agent?
There isn’t any fix salary from the LIC for the agents. Though, Agents earn the commission for the policies they sale. LIC offers 25% to 35% commission on the policy premium for the first year, then 7.5% for 2nd & 3rd Year + 5% till the policy maturity.
How can I open my gratuity account?
Once the Trust Deed and Trust Rules of the Gratuity Trust are registered then Trustees apply for PAN and TAN of the Gratuity Trust. After getting the PAN and TAN of the Registered Gratuity Trust then an Bank Account is opened in a Scheduled Bank as mentioned in Rules of the Income Tax Rules, 1962.
What is the new rule of gratuity?
For gratuity calculation, a month of work is calculated as 26 days. So, the 15-day salary will be calculated as (monthly salary x 15)/26. This number multiplied by the number of years in service will be the gratuity amount payable. As the basic wages go up, the payment of gratuity will also go up.
Is LIC agent a good career?
1] Joining A Successful Team: By joining LIC as agent, one will be a part of the country’s finest team of life insurance Agents. 2] Attractive Remuneration: LIC offers one of the best remuneration systems in the industry that not only takes care of your current earnings, but also guarantees an earning for the future.
When do you not qualify for LIC group gratuity?
The person will not be eligible for gratuity if he does not complete 5 yrs. LIC’s Group Gratuity Scheme is a fund created to meet future liability and as such will have no impact on an employee leaving before 5 years. At the most contribution for next year will get reduced because 1 person has left and there is no liability on his account.
How does gratuity work in a life insurance policy?
With this plan, the employer can meet the obligation of statutory gratuity benefit to their employees. Contributions are paid by the policyholder each year to secure the gratuity benefit in order to provide life cover benefit, according to the rules of the policy.
How does LIC calculate the estimated gratuity liability?
LIC calculates the liability for the persons employed as on date, taking into account the existing funds available in the fund account it maintains for meeting the estimated gratuity liability if it arises immediately . If the fund is lesser by XXXX amount then it asks you to pay such amount as premium.
When does an employer have to pay gratuity?
Under the Payment of Gratuity Act, 1972, it is employers statutory liability to pay 15 days salary (15/26 of a month’s wages) for every completed years service to each of his employees on their exit, for any reason after five years of continuous service, subject to maximum limit of 3.5 lacs. Higher benefits can be paid if the employer so desires.