Gratuity Provision: Do We Need an Actuarial Certificate Every Year to Determine Liability?

Sweta Parakh
Gratuity became applicable last year, and we propose to create a provision for gratuity. How do we determine the amount to be deposited in the provision every year, and is actuarial certification mandatory? Is it required annually? Please help.
Babu Alexander
Now, coverage of Group Gratuity Insurance with Life Insurance Corporation is mandatory! The Act has been amended.
R.N.Khola
Payment of Gratuity Act, 1972 nowhere asks us to have any actuarial certification.

R N KHOLA
trustsolutions.delhi@gmail.com
Hi there!

Actuarial certification is part of corporate governance and not mandated by the Gratuity Act. If your organization wants to comply with corporate governance standards, it should undertake the valuation exercise. Many companies seeking external investments require a valuation of the gratuity fund as part of the due diligence process to assess the company's financial well-being.

Thanks and regards,
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