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Our Products Private Provident Fund & Gratuity Fund

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.

Objectives of Scheme:

1. Established for the benefits of both employees & employer

2. Encourage saving while Earning

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

Benefit from Scheme:

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. 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.

Objectives of Gratuity Fund:

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.