The Code on Social
Security, 2020
Its Implications on
Gratuity Liabilities

Hare is what you

need to Know:

9 Existing Labour Laws Swapped for the New Code

Key Changes impacting Gratuity: Wages Definition & Vesting Criteria for Select Employee Categories

Expected Impact Velocity: ore than 90% Companies in India

Expected Impact Severity: 20% to 50% increase in Gratuity Liabilities can be expected on Average

Step 1: Impact Assessment Report
based on Actuarial valuation

Assessment of Wages
Assessment of Vesting Criteria
Impact Assessment on Gratuity
Step1 image-min

Step 2: Mitigation Strategies to

Reduce Curb Impact

team meeting in office room
Salary Redesign
Changes to Other Retirement Benefits
Re-designing of Company Gratuity Schemes which pay higher than Statutory Limits
360 degree review to optimize impact on Employers & Employees

Why Us?




Client Retention Ration

30.5 Lakh

Employees Values Annually

Knowledge Centre


Key Highlights *No Insurance company currently sells a Group Gratuity product without a Gratuity Trust Key Observations:  All  Gratuity  Products  offered  by  Insurance  companies  have  a mandatory  requirement  to  set  up  a  Gratuity  Trust.  Thus,  60  days  can  be  considered  a tight  deadline  for  obtaining  an insurance  policy An  employer  should  ensure  that  premium  towards  [...]