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  • Kotak Gratuity Plus Group Plan


    Gratuity is a obligation for any employer to retain talented individuals in their company. A good gratuity plan can reduce business costs and help meet the funding of gratuity payments. This can also give an employer great tax benefits applicable for gratuity funds. The Kotak Gratuity Plus Group Plan is a unit linked plan that will help you maintain and payout you gratuity obligation in an effective manner and also help you get resources to maintain business as usual.

    To Be Eligible For the Kotak Gratuity Plus Group Plan




    Employee and Employer groups

    Group Size

    10 employee minimum

    No limit for maximum

    Age of Entry

    Minimum 18 years

    Maximum 74 years

    Maturity Age

    Maximum 75 years

    Contribution Premium

    At inception

    Minimum Rs. 2,00,000

    Maximum No Limit

    Contribution Frequency

    Yearly, Half-yearly, Quarterly, Monthly

    Sum Assured

    Minimum Rs. 1,000

    No limit for maximum

    Policy Term

    1 year which is renewable

    The Key Features of This Plan Are:

    1. Long term investment growth with market linked returns: With this you can invest in a unit-linked investment where your moneys of gratuity will fall into various market instruments. This enables an employer to reward his talented employee with a great gratuity plan, without affecting the moneys of the business.
    2. Choose from a choice of 6 different fund options to suit the risk and investment objective you are comfortable with.
    3. Along with a great gratuity plan by kotak life, get life cover for your employees, and if in an unfortunate event of their demise the life coverage will be paid to their families.
    4. Get your funds increased to a higher level with regular additions to your scheme the unit addition will be in a percentage format which will get added to the fund at the beginning of every calendar month.
    5. Gratuity is payable to the member on survival of the policy as per the scheme rules.
    6. Switching is allowed between funds during the policy term, there are no charges for these switches.
    7. Redirection of future contributions into other funds can be done as well.
    8. Partial withdrawal is not allowed under this plan.
    9. Surrender can be done by giving a month’s notice to the company. At the end of the month the payout will be applicable to be paid out.

    The Benefit and Advantages of The Gratuity Plus Group Plan:

    The benefits for the employee:

    The employee is eligible under section 10 (10D) of the Income Tax Act 1961.

    1. Death benefits payable to the employees are exempt from tax.
    2. The death benefit is minimum sum assured of Rs. 1, 000 + Gratuity settlement as per the Trust Rules.
    3. The gratuity settlement will be paid as per the rules of the Trust
      1. Government employees at the time of retirement get their gratuity payments which are completely tax free.
      2. Non-government employees at the time of retirement get their gratuity payments and get tax-exempt for an amount of up to Rs. 10, 00, 000.

    The benefits of the employer:

    1. Any earnings from investments made in the funds by an approved Gratuity fund is exempt from taxes as per Section 10(25)(iv) of the Income Tax Act, 1961.
    2. Any approved gratuity fund contributions is deductible under section 36 (1)(v) of the Income Tax Act, 1961, if they meet the conditions of the section.

    The death benefit, if a member dies the payment will be as per Trust rules when it comes to Gratuity settlement as well as the sum assured.

    How Does The Plan Works?

    The employer will create a trust and appoint trustees in order to maintain the trust. The employer will also make contributions towards this trust on actual valuation. The employer makes investment within 6 different options of funds, once the funds start to receive contribution the units are allocated. When the employee retires or resigns after the selected policy term. The company will redeem the units made in the investment funds to give the employee the gratuity benefit. If the employee has been in an unfortunate event and dies the employee will be paid an additional sum assured by the employer which is a minimum of Rs. 1, 000

    The investment of fund options:

    1. Group Balanced Fund - which has a moderate risk-return profile
    2. Group Bond Fund - which has a conservative risk-return profile
    3. Group Floating Rate Fund - which has a conservative risk-return profile
    4. Group Gilt Fund - which has a conservative risk-return profile
    5. Group Money Market Fund - which has a secure risk-return profile
    6. Group Short Term Bond Fund - which has a conservative risk-return profile

    Investment options:

    Fund name

    Government/ Government Guaranteed Securities

    Other Debt securities


    Short term Investments such as money market instruments, short term bank deposits, call money and cash

    Group Balanced Fund

    20% - 70%

    20% - 70%

    30% - 60%

    0% - 40%

    Group Bond Fund

    0% - 75%

    25% - 100%


     0% - 40%

    Group Floating Rate Fund

    0% - 75%

    25% - 100%


     0% - 40%

    Group Gilt Fund

    80% - 100%



    0% - 40%

    Group Money Market Fund





    Group Short Term Bond Fund

    0% - 50%

    25% - 75%

    10% - 75%

     10% - 75%
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