The Government of Karnataka has recently issued the Karnataka Compulsory Gratuity Insurance Rules, 2024. These rules, which came into effect on January 10, 2024, are aimed at ensuring that employers fulfil their gratuity obligations towards eligible employees.

Here are the key aspects of the Compulsory Gratuity Insurance Rules:

1. Mandatory Insurance: Employers in Karnataka are now required to obtain a valid insurance policy to cover their liability for gratuity payments. This insurance policy ensures that employees receive their rightful gratuity benefits as per the Payment of Gratuity Act, 1972.
2. Gratuity Liability: The rules emphasize the employer’s responsibility to provide gratuity to eligible employees. By securing an insurance policy, employers can safeguard themselves against any financial burden arising from gratuity payments.
3. Employee Protection: The rules prioritize the welfare of employees by ensuring that they receive their gratuity entitlements promptly. This move aims to enhance employee confidence and financial security.
4. Compliance: Employers must comply with these rules by procuring an insurance policy that covers their gratuity liability. Failure to do so may result in legal consequences.

In summary, the Karnataka Compulsory Gratuity Insurance Rules, 2024 underscore the importance of gratuity benefits for employees and provide a framework for employers to fulfil their obligations. Employers should promptly review their insurance arrangements to comply with these rules and prioritize the well-being of their workforce.

Click here to read the complete Notification of Compulsory Gratuity Insurance Rules by the Government of Karnataka