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.

Benefits from Gratuity Fund:

• Flexibility in contribution
• Committed rate of interest
• Interest earned are tax exempted
• Better fund management
• Better employee retention 
• Easy refund procedure