Companies may be required to give a gratuity to employees after just one year of completed service (presently it is 5 years).
The parliamentary panel has recommended this proposal to the government.
Most of the companies currently pay the gratuity portion from the companies P&L.
If this proposal gets implemented, Life Insurers might see a significant increase in Gratuity Insurance both (Past service gratuity and Future Service gratuity).
What is your opinion on this recommendation?