How to calculate Past Service Liability in Gratuity Valuation

nitish.agrawal

Hello Friends,
Just started working on Gratuity valuation and wanted to know how to calculate Past Service liability and future service contribution for 400 employees.I have data with me like salary escalation,discount rate,age,DOJ etc.

Shrikant_pra

The easy way out is to go for group gratuity policy of LIC. Anyway making provision for gratuity liability is accounting function.

nitish.agrawal

Thanks Shirkant,
Basically I am looking for gratuity valuation calculation and trying to find out Past Service liability and future service contribution.
If you can help me with this

Shrikant_pra

In excel sheet fill data under fields: name, DOJ, Years of service, Rate of last basic+DA, Gratuity amount
Gratuity liability on date can be calculated with above. At end of every month you will able to view your liability.

asian-fanfics

How to Calculate the Accountability in the Past in Bonus Valuation you share is great. Very good calculation and high efficiency. Thanks for sharing this great calculation.
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