A Group Gratuity Scheme helps employers systematically fund their statutory gratuity liability instead of paying it out of pocket when it falls due. CoreLink Finance helps businesses set up a gratuity trust and fund it through a managed insurance scheme, so retiring or exiting employees are paid on time, without straining company cash flow.
Build up the gratuity corpus year by year through contributions, instead of a large lump-sum payout later.
Get actuarial valuations that help with accounting disclosures and financial planning under applicable standards.
Ensure retiring or exiting employees receive their gratuity on time, supporting trust and goodwill.
Gratuity is a statutory lump-sum benefit that employers must pay to employees who complete a minimum period of continuous service, typically on retirement, resignation, or death, as prescribed under applicable law. If unfunded, this liability can become a sudden, large cash outflow for the business.
A Group Gratuity Scheme lets the employer set up a trust and fund this liability gradually through regular contributions, managed and invested by an insurer. An independent actuarial valuation determines the required contribution each year, based on employee data, salary, and tenure.
When an employee becomes eligible for gratuity, the trust — backed by the insurer-managed fund — pays out the amount, so the company is not forced to arrange a large sum at short notice.
Build the gratuity corpus through planned annual contributions instead of ad-hoc payouts.
Annual valuations estimate the liability accurately, helping with budgeting and compliance.
Contributions are invested by the insurer, with the fund growing to help meet future payouts.
Funds are held in an approved gratuity trust, separate from the company's regular working capital.
Contributions to an approved gratuity fund may be eligible for tax deduction, subject to prevailing tax laws.
Employees receive their gratuity promptly on retirement, resignation, or death, without delay.
The scheme automatically accounts for new joiners, exits, and salary changes each valuation cycle.
Moves a growing, unfunded liability off the company's books and into a dedicated, managed trust.
| Monthly Salary (Basic + DA) | Years of Service | Approx. Gratuity Payable* |
|---|---|---|
| ₹30,000 | 10 Years | ₹1.73 Lakhs |
| ₹50,000 | 15 Years | ₹4.33 Lakhs |
| ₹80,000 | 20 Years | ₹9.23 Lakhs |
*Illustrative calculation based on the standard formula (15/26 × last drawn basic+DA × years of service), subject to applicable statutory ceilings and conditions. Actual liability for your organisation should be confirmed through an actuarial valuation.
At CoreLink Finance, we don't just help you buy a policy — we actively support you through the claim process by coordinating with the insurer, guiding documentation, and following up for a smooth experience.
We help you choose the right insurer and policy based on claim settlement ratio, reliability, and your profile.
Before policy issuance, we ensure all your personal, financial, and medical details are accurate and properly declared.
We guide you in filling out proposal forms correctly, so no hidden or incorrect information gets submitted.
In case of a claim, you get a personal claim expert who handles the process — from documentation to settlement.
We actively coordinate and follow up with insurers to ensure quick and smooth claim processing.
Our team checks all documents before submission to avoid technical errors that often lead to delays or rejection.
HR and finance teams can follow these steps to avoid delays or disputes in gratuity settlements.
Keep precise records of each employee's date of joining, salary history, and continuous service.
Revalue the liability every year so contributions stay adequate and compliant.
Share updated headcount, salary, and exit data with the insurer or trustees each cycle.
Initiate the gratuity claim as soon as an employee retires, resigns, or is relieved, to avoid payout delays.
Ensure every employee has filed a valid gratuity nomination, especially important in case of death.
Keep the trust deed aligned with current law and company policy as regulations evolve.
Group Gratuity suits any employer with a growing, long-serving workforce. Consider this if you are:
An employer covered under the Payment of Gratuity Act or similar obligations
A growing company facing a rising, unfunded gratuity liability
An HR or finance team wanting predictable, budgeted annual contributions
Looking for audit-ready actuarial valuations for accounting disclosures
A company with employees nearing retirement or long tenure
Wanting to assure employees that their gratuity is funded and secure
Talk to CoreLink Finance for honest, no-obligation guidance on setting up a Group Gratuity Scheme for your organisation.
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