GRATUITY SCHEME

NLPC has been involved in the Administration of Gratuity Funds for decades.  Gratuity is a lump sum cash benefit payable at retirement, withdrawal or death.

Gratuity benefits are usually based on an agreed scale by both the employer and employees (e.g. 2wks pay of each completed year of service) and there is minimum qualifying years of service e.g. 5years. The cost of funding the scheme is fully borne by the employer but in some cases it could be complusory.  Where it is compulsory, an employee will be entitled to the refund of his/her own contribution if such an employee leaves service before the qualifying year and will not be entitled to any benefit arising from employers contributions.