Adjustment to Gratuity Insurance Deadline in Karnataka: What Employers Need to Know

In a recent amendment to the Karnataka Compulsory Gratuity Insurance Rules, 2024, the state government has modified the time limit for employers to obtain a valid insurance policy. As per Serial No. 3(2) of Notification No. LD 325 LET 2023 dated 10/01/2024, the initial requirement of “sixty days” from the commencement of the rules has been revised to “six months.” This change allows employers of existing establishments ample time to ensure compliance with the insurance policy mandate. Effective immediately, this adjustment aims to facilitate smoother implementation of gratuity benefits across establishments in Karnataka. This notification was published on July 4, 2024.

By order and in the name of the Governor of Karnataka, this extension reflects the government’s commitment to supporting businesses in meeting regulatory obligations while safeguarding employee welfare.