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actuarial valauation in case of gratuity

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(Querist)
14 August 2009 whether actuarial valuation is compulsory under payment of gratuity act,1972. What Are the provisions of actuarial valuation
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Venkat Rao Marella

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Venkat Rao Marella (Expert)
14 August 2009 The Gratuity Act makes it mandatory for the employers to pay Gratuity to eligible employees. The Acturial valuation is as per the Financial disclosures. Since the disclosures require the company to state the terminal benift liability, the prime Institutes like ICAI / FASB are making this mandatory to get the val;uation as per the methods so that the value of terminal benifits are properly disclosed.

Venkat.
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