BizproutX: Your Guide to Navigating the Karnataka Compulsory Gratuity Insurance Rules

In the ever-evolving tapestry of labor laws, Karnataka has introduced the Compulsory Gratuity Insurance Rules, 2024, a pivotal move to fortify employee benefits and ensure financial security.

Understanding the New Mandate

Effective from January 10, 2024, these rules mandate that all establishments in Karnataka, as per the Payment of Gratuity Act, 1972, must secure an insurance policy covering their gratuity liabilities.

Key Compliance Timelines

• Existing Establishments: Obtain the insurance policy within 60 days from the commencement date, i.e., by March 10, 2024.
• New Establishments: Secure the insurance within 30 days from the date the rules become applicable to them.

Registration and Renewal Protocols

Post procurement, employers must:

1. Register with the Controlling Authority: Submit an application along with the list of insured employees within 30 days of obtaining the insurance.
2. Renewal Notifications: Inform the authority about policy renewals within 15 days of such renewal.

Implications of Non-Compliance

Failure to adhere to these mandates may result in penalties, including fines and imprisonment, underscoring the importance of timely compliance.

BizproutX: Illuminating the Path

Navigating these regulations can be intricate. BizproutX stands as a beacon, offering a comprehensive FAQ guide to demystify the Karnataka Compulsory Gratuity Insurance Rules. This resource addresses pressing questions, ensuring that businesses remain informed and compliant.

Embark on Your Compliance Journey

For a deeper dive into these regulations and to equip your establishment with the knowledge to seamlessly align with the new mandates, explore the BizproutX Knowledge Base.

Stay enlightened, stay compliant.

Ready to master compliance in Karnataka? Click below to explore the FAQs! 👇
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