India Government enhanced the gratuity limit from Rs 3 lakh to Rs 5 lakh for LIC agents. This will bring substantial improvements to the working condition and benefits of LIC agents.
The term insurance cover for the agents has also been expanded from the existing range of Rs 3,000-10,000 to Rs 25,000-1,50,000.
This enhancement in term insurance will significantly benefit the families of deceased agents, offering them a more substantial welfare benefit.
Gratuity is a lump-sum payment that is made to an employee upon retirement or termination of employment. It is a reward for the employee’s long service and dedication to the company.
LIC agents are eligible for gratuity under the Payment of Gratuity Act, 1972. The Act provides that an employee is eligible for gratuity if he/she has completed at least 5 years of service with the company.
The gratuity payable to an LIC agent is calculated as follows:
- Gratuity = Last drawn basic salary * 15/26 * Number of years of service
However, the maximum gratuity payable to an LIC agent is capped at ₹5 lakh. This means that even if the calculated gratuity is more than ₹5 lakh, the agent will only receive ₹5 lakh.
The gratuity limit for LIC agents was increased from ₹3 lakh to ₹5 lakh in September 2023. This increase was welcomed by LIC agents, as it will provide them with a larger financial cushion upon retirement.
Benefits of Gratuity for LIC Agents
Gratuity provides a number of benefits to LIC agents. These benefits include:
- Financial security: Gratuity provides a lump-sum payment to LIC agents upon retirement, which can help them to meet their financial needs.
- Supplement to pension: Gratuity can supplement the pension that LIC agents receive after retirement.
- Compensation for loss of income: Gratuity can compensate LIC agents for the loss of income that they may experience upon retirement.
- Peace of mind: Gratuity can provide peace of mind to LIC agents, knowing that they have a financial cushion to fall back on upon retirement.
Gratuity is a valuable benefit that is available to LIC agents. It is a reward for their long service and dedication to the company.
The gratuity limit for LIC agents was increased to ₹5 lakh in September 2023, which will provide them with a larger financial cushion upon retirement.