Gratuity Scheme Details
Our Policy Group Gratuity Scheme includes the following information:
• 79 employees.
• Average age of 33.04.
• Average monthly salary of Rs. 8513.70.
• Average past service of 4.96.
• Present Value (PV) of Past Service Benefit: Rs. 1,554,491.
• Current service cost: Rs. 233,309.
• Total service gratuity: Rs. 11,214,347.
• Accrued gratuity: Rs. 2,344,833.
• Life Cover for Superannuation Age (LCSA): Rs. 8,869,514.
Please calculate the annual gratuity premium.
From Germany
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6Our Policy Group Gratuity Scheme includes the following information:
• 79 employees.
• Average age of 33.04.
• Average monthly salary of Rs. 8513.70.
• Average past service of 4.96.
• Present Value (PV) of Past Service Benefit: Rs. 1,554,491.
• Current service cost: Rs. 233,309.
• Total service gratuity: Rs. 11,214,347.
• Accrued gratuity: Rs. 2,344,833.
• Life Cover for Superannuation Age (LCSA): Rs. 8,869,514.
Please calculate the annual gratuity premium.
From Germany
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Calculating the annual gratuity premium can be a bit complex as it depends on various factors such as salary, length of service, and the gratuity formula used. However, based on the information you provided, here's a general approach you can take:
1. Start with the 'PV of Past Service Benefit' which is Rs. 1,554,491. This represents the present value of the past service benefits.
2. Add the 'Current Service Cost' which is Rs. 233,309. This represents the cost of providing future benefits to the employees for the current period.
3. The sum of these two values gives you the Total Service Cost (TSC). So, TSC = Rs. 1,554,491 + Rs. 233,309.
4. Then, add the 'Accrued Gratuity' which is Rs. 2,344,833. This represents the gratuity amount that has been accrued but not yet paid out.
5. Subtract the 'LCSA' (Leave Commutation and Superannuation Allowance) which is Rs. 8,869,514 from the result. This amount usually represents the contributions made towards a superannuation fund or the value of the leave encashment.
6. The result will give you the Net Liability.
7. The annual gratuity premium can then be calculated as a certain percentage of the Net liability. The percentage used can vary based on the specific gratuity scheme or policy in place.
Here's a simple way to remember the steps:
➡️ Start with the PV of Past Service Benefit
⚫ Add the Current Service Cost
➡️ Add the Accrued Gratuity
⚫ Subtract the LCSA
➡️ Calculate the percentage of the Net Liability (this percentage is based on your company's specific gratuity scheme)
Please remember to check your company's specific policy on gratuity and any relevant labor laws in Germany. The calculation can vary based on the specific terms in place.
From India, Gurugram
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1. Start with the 'PV of Past Service Benefit' which is Rs. 1,554,491. This represents the present value of the past service benefits.
2. Add the 'Current Service Cost' which is Rs. 233,309. This represents the cost of providing future benefits to the employees for the current period.
3. The sum of these two values gives you the Total Service Cost (TSC). So, TSC = Rs. 1,554,491 + Rs. 233,309.
4. Then, add the 'Accrued Gratuity' which is Rs. 2,344,833. This represents the gratuity amount that has been accrued but not yet paid out.
5. Subtract the 'LCSA' (Leave Commutation and Superannuation Allowance) which is Rs. 8,869,514 from the result. This amount usually represents the contributions made towards a superannuation fund or the value of the leave encashment.
6. The result will give you the Net Liability.
7. The annual gratuity premium can then be calculated as a certain percentage of the Net liability. The percentage used can vary based on the specific gratuity scheme or policy in place.
Here's a simple way to remember the steps:
➡️ Start with the PV of Past Service Benefit
⚫ Add the Current Service Cost
➡️ Add the Accrued Gratuity
⚫ Subtract the LCSA
➡️ Calculate the percentage of the Net Liability (this percentage is based on your company's specific gratuity scheme)
Please remember to check your company's specific policy on gratuity and any relevant labor laws in Germany. The calculation can vary based on the specific terms in place.
From India, Gurugram
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