BIL started the Private Provident Fund scheme with effect from 24th May, 2010 as approved by the RMA vide their letter number RMA/FISD/18/2009/8891. This scheme can be availed by both private and other agencies. PPF is a mandatory, tax qualified, defined contribution benefit plan wherein equal contribution at the specified rate is made by the employer and the employee, and the same is payable in lump sum along with accrued interest on retirement or employee at the time of employee separation from service.

Any enterprise or organizations are eligible for PPF scheme. However, as per the labour and employment Act 2007, it is mandatory to have PPF Scheme if the no of employees are 10 or more in numbers.

1. Established for the benefits of both employees & employer

2. Encourage saving while Earning

3. To give post service & in- service benefits to employees

1. Guarantee risk free return of interest on negotiable basis p.a

2. PPF contributions are tax deductible

3. Can avail loan up to 95% of total PF accumulated

4. Better Fund Management

5. Tax free at the time of lump sum withdrawal

6. Better employee retention

1. Both the employer and employee shall each contribute minimum of 5% of an employee monthly basic salary to the credit of an employee provident fund account and there is no upper limit for the contribution.

2. PPF amount should reach BIL within 15th of the following month and failing to do so, will attrach penal interest of 1%.

3. Interest will be calculated on daily product basis.

4. Employer has to intimate BIL regarding any discontinuation of every individual PPF account.

5. Discontinuation or irregularly of more than three month will automatically close the existing PPF account and BIL will do the settlement according to the prescribed guidelines.

1. On retirement from service after attaining the retirement age.

2. On retirement on account of permanent and total incapacity for work due to bodily or mental infirmity, duly certified by the medical officer of the employer.

3. On retrenchment from service by the employer, voluntary retirement under reorganization or closure

4. On termination of service by the employer on disciplinary ground

5. On resignation by the employee.

BIL started the Gratuity Fund Management since 13th August, 2014, as approved by the RMA vide their letter number RMA/FRSD/22/2014-2015/0712. This scheme is now applicable for both the public and private organizations alike. As per the Income Tax Act of the Kingdom of Bhutan 2001, the contributions made to a Gratuity Fund for the benefit of the employees shall be allowed as deductions provide the contributions are invested with an authorized fund manager.

Gratuity is a lump sum payment made to an employee by the employers at the time of separation from service. It is a defined benefit scheme, or one that operates without contribution from employees based on the work history of the employee.

1. Post retirement lump sum cash benefits to the GF members.

2. Income security in the event of permanent disability of the members.

3. Social support to surviving family members of the deceased member.