Gratuity became applicable last year and we propose to create a Provision for Gratuity, how to determine what amount is to be deposited in provision every year and if actuarial certification is mandatory is it needed every year? please help
From India, Pune
From India, Pune
Now coverage of Group Gratuity Insurance with Life Insurance Corporation is mandatory! The Act has been amended.
From India, Madras
294From India, Madras
I do not have the reference readily available. However relevant section 4 A as appearing in the act is as follows:
Compulsory insurance.
6*[4A. Compulsory insurance.- (1) With effect from such date as may be notified by the appropriate Government in this behalf, every employer, other than an employer or an establishment belonging to, or under the control of, the Central Government or a State Government, shall, subject to the provisions of sub-section (2), obtain an insurance in the manner prescribed, for his liability for payment towards the gratuity under this Act, from the Life Insurance Corporation of India established under the Life Insurance Corporation of India Act, 1956 (9 of 1956) or any other prescribed insurer:
6. Ins. by 22 of 1987, s. 5
From India, Madras
Compulsory insurance.
6*[4A. Compulsory insurance.- (1) With effect from such date as may be notified by the appropriate Government in this behalf, every employer, other than an employer or an establishment belonging to, or under the control of, the Central Government or a State Government, shall, subject to the provisions of sub-section (2), obtain an insurance in the manner prescribed, for his liability for payment towards the gratuity under this Act, from the Life Insurance Corporation of India established under the Life Insurance Corporation of India Act, 1956 (9 of 1956) or any other prescribed insurer:
6. Ins. by 22 of 1987, s. 5
From India, Madras
Hi There!
Actuarial certification is part of corporate governance and not mandated by Gratuity Act.If your organization wants to come clean on corporate governance then it should undertake the valuation exercise.Many companies who are seeking external investments are looking for valuation of gratuity fund as it is a part of due diligence company's financial well being.
Thanks & Regards,
From India, Ghaziabad
Actuarial certification is part of corporate governance and not mandated by Gratuity Act.If your organization wants to come clean on corporate governance then it should undertake the valuation exercise.Many companies who are seeking external investments are looking for valuation of gratuity fund as it is a part of due diligence company's financial well being.
Thanks & Regards,
From India, Ghaziabad
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