Employee Benefits in India

Gratuity is a statutory benefit payable to the employees by the companies. It is calculated as per provisions stated in the Payment of Gratuity Act, 1972. For companies, it is often an open-ended liability and is calculated from the date of joining.  The valuation of gratuity benefit is needed to book the obligation in respect of this benefit. 

Most of the companies in India allow various types of leaves to their employees (Earned Leave, Sick Leave, Casual Leave, etc). In most cases the unused leave days are encashed by the employees at the time of separation. As per the accounting standards, an entity needs to recognize an Obligation in respect of such outstanding balances. There are certain aspects that need to be considered in deciding whether a valuation is needed and also in deciding value of the key assumptions that need to be made. If you are interested in understanding your liability drop your number below and we'll get in touch with you.

This is often relevant to public sector undertaking where the employees are eligible for pension benefits. We help organizations assess their pension benefit obligations based on the long term assumptions applicable to the scheme.

Often organizations try to retain talented resources by offering them a cash benefit that is paid on completion of certain time period or fulfilment of certain milestone events. We have performed valuations for number of such scheme and can help you design or value yours. 

There are companies that cover medical expenses of their employees after the employee retires. Valuation of such benefit is often tricky as it involves having insights about the medical benefit claim rates and cost of medical benefits. With experience of over a decade behind us you can depend on us to ascertain the obligation for your organization.  

Some companies have set up an Exempt Provident Fund to manage the Provident Fund assets. There are many rules the govern the operations of such funds with exempt status. From an accounting standpoint, as per the ICAI guidance, these benefits are 'Defined Benefits' and hence obligation in respect of the interest rate guarantee on this benefits needs to be accounted for. Get in touch in case your organization has set up an Exempt Trust for which you need a valuation.