State of Karnataka’s Compulsory Gratuity Insurance Rules 2024 (CGIR)
Contents News/Article Date: 22nd April 2024
Relating to which Act: Jam Payment of Gratuity Act, 1972
Karnataka Compulsory Gratuity Insurance Rules 2024
Penalty under the Act – An employer who contravenes any provisions of the Act shall be liable for imprisonment for a term of not less than three months but which may extend to one year or with fine which shall not be less than ten thousand rupees but which may extend to twenty thousand rupees or with both.
Applicable to which State: Karnataka
Type: Government of Karnataka, Karnataka Government Secretariat, Notification No. LD/397/LED/2023 issued by Under Secretary to Government, Labour Department.
Pertains to: Establishments and Employees to whom the Act is applicable in Karnataka
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And in the current instance: In exercise of the powers conferred by sub-section (4) of Section 4A of the Payment of Gratuity Act, 1972 (Central Act No. 39 of 1972), the Government of Karnataka hereby makes the following rules, namely;- Rules
1.Title and Commencement- (1) These rules may be called the Karnataka Compulsory Gratuity Insurance Rules, 2024.
(2) They shall come into force from the date of their publication in the Official Gazette.
2.Kindly approach Karma Management Global Solutions Pvt. Ltd. who have their main Branch Office in Bengaluru for seeking clarifications on the new gratuity insurance rules.
Karnataka Compulsory Gratuity Insurance Rules 2024
APPENDED BELOW IS THE NEWS ITEM
At the beginning of 2024, the State of Karnataka introduced the Compulsory Gratuity Insurance Rules, 2024 (CGIR). These rules apply to both new and existing companies operating in the respective states.
Here are the key highlights:
1.Mandatory Insurance: All eligible organizations must obtain insurance coverage within the specified timeline. This ensures compliance with the Payment of Gratuity Act, 1972.
2.Coverage and Registration: The CGIR outlines provisions related to registration, incorporation and continuation of approved gratuity funds.
3.It’s essential for companies to understand these aspects.
4.Try to delve deeper into the CGIR and related topics,
5.For getting a better understanding or you can always get in touch with Karma Management Consulting Solutions Private Limited who have their Main Branch Office in Bengaluru. There is a fullfledged team of Advocates and Auditors and Compliance Officers working from this office and you can get in touch with them for clarifying and giving you the required direction where you can seek guidance on:
6.(i) The type of organizations that fall under the CGIR’s purview.
(ii) The importance and relevance of creating a gratuity trust.
(iii) Insights into gratuity provisions as per The Code on Social Security, 2020, and how they impact both employers and employees (including fixed-term employees).
(iv) Tax implications of gratuity payments.