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.
From India, Pune
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From India, Pune
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Now coverage of Group Gratuity Insurance with Life Insurance Corporation is mandatory! The Act has been amended.
From India, Madras
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302From India, Madras
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Payment of Gratuity Act, 1972 no where asks us to have any actuarial certification. R N KHOLA
From India, Delhi
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From India, Delhi
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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,
From India, Ghaziabad
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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,
From India, Ghaziabad
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