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Gratuity ---- Kahaaaaa Haaaiiiii Ttttuuuuuuu

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This query is : Resolved

Dhaval Joge (Querist)

03 November 2008 it is my simple question to all where is the gratuity fund in the real sense
if a person gets retair where he will ask for the gratuity.

who will pay the employee the gratuity

where is the gratuity in the balance sheet

Wht is the role of insurance company in this gratuity

Wht u think is the Gratuity liability of company or an asset of it

answer the questions

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)

04 November 2008 The employer is liable to pay gratuity and the claim will be made to him. If the gratuity is administered through a fund he will authorise the fund to settle he gratuity lliability. THe insurance company if opted for as a fund manager, its role is that of managing the fund.
Grtuity will be shown as a current liability in the balance sheet of the company based on the actuarial valuation of gratuity liability.

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