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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320From India, Madras
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If it is so plz provide us the copy of gazette notification to this effect. R N KHOLA
From India, Delhi
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From India, Delhi
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I do not have the reference readily available. However, the relevant section 4A 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 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
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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 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
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As per my notice, one or two state governments, in the capacity of the appropriate government, have issued notifications on compulsory insurance under section 4A. However, we have not come across any such amendment in the Act.
R N KHOLA
From India, Delhi
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R N KHOLA
From India, Delhi
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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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