Gratuity is an integral part of employee benefits provided by the employer either as a statutory obligation or as a bilateral agreement. In Sri Lanka, Gratuity is payable under Gratuity Act No. 12 of 1983
- By making payments out of the revenue accounts
- By scientific funding of the liability by Actuarial valuation.
- Attractive rate of interest
- Group Gratuity Plan wherein the gratuity will be paid by LIC (Lanka) Ltd to the employees of the Companies.
5. In case an employee dies during the period of his/her service-
• The gratuity will be paid to the nominee of the employee for the period of service which he/she has already completed and for the remaining service period till retirement.
• This assures the employee's gratuity for the full-service period for both while in service (in case of death while in service) and for retirement.
• Future service liability is one big advantage which is so unique that the Company can earn the goodwill of the employees by the benefit that is made available in this policy.