Actuarial Valuation of Employee Benefits
In Complaince with statuary Accounting Standards
Actuarial Valuation of Gratuity
Gratuity Act 1972 and its subsequent amendments mandates employer to pay a fix amount to employee on seperation (withdrawal, retirement or death)
This is amount is calculated as 15 days of final monthy salary for each year of service rendered subject to a minimum service period.
There is also a limit of Rupees Ten Lac (to be revised to Rupees Twenty Lac soon).
This deferred liability needs to be valued as per actuarial technique called projected Unit credit method. You can use our services to get actuarial valuation of Gratuity.
Actuarial Valuation of Compensated Absense
Compensated Absense are the leaves that employees can take without getting their salaries deducted. These can be either:
- Vesting i.e. the type of leaves that need to be encashed if not taken subject to certain restrictions
- Non-Vesting i.e. non encashable leaves
Both of them need to be provisioned for. And thus Actuarial valuations is needed to determine these liabities.
Actuarial Valuation of Pension Schemes
