Mithras Consultant

  The Karnataka Government recently introduced the Karnataka Compulsory Gratuity Insurance Rules, 2024. It is effective from 10th January 2024. These rules mandate that all Indian and multinational companies, operating within Karnataka must comply with the regulations before 9th March 2024. Organizations such as schools, colleges, hospitals, hotels, and NGOs need to adhere to this. Understanding these rules is crucial for businesses. And organizations need to ensure compliance and avoid penalties. Scope of Applicability:  The Karnataka Compulsory Gratuity Insurance Rules, 2024, apply to all establishments covered under the Payment of Gratuity Act, 1972, with ten or more employees. This includes Indian and multinational companies, as well as other organizations mentioned earlier. It is mandatory for such establishments to provide gratuity insurance for their employees. Implementation Timeline:  The rules require compliance by all affected establishments before 9th March 2...

  Enterprises of all shapes and sizes share a common desire to decipher the regulatory framework governing actuarial valuations. This is particularly relevant in the Indian context, where the gratuity scheme stands as one of the most prevalent employee benefits. Here, we have tried to decode the gratuity valuation applicability for businesses. Want to explore the specifics? Let's first grasp which types of enterprises are mandated to provide gratuity benefits to their employees. This can be categorized into two main aspects: The Payment of Gratuity Act, 1972 The Act confers a statutory right to gratuity for all employees who have: Rendered 5 years of continuous service. Experienced termination of services due to superannuation, retirement, resignation, death, or disablement. The Act applies to establishments with 10 or more employees on any day of the preceding year. It encompasses every form of business, including proprietorships, partnerships, and limited companies. Once the Act...

  Have you ever come across this question, ' is actuarial valuation compulsory for gratuity ' ? Then let us tell you that gratuity is a significant aspect of employee benefits in India, governed by the Payment of Gratuity Act, 1972. To simplify the often intricate process of calculating gratuity, an Excel sheet can be a handy tool. Let us break down the steps to calculation of actuarial valuation of gratuity excel, ensuring simplicity and compliance with legal requirements. Gratuity Actuarial Valuation Formula The first step is comprehending the basic gratuity actuarial valuation formula. Gratuity is calculated using the following simple formula: Gratuity = (Last drawn salary * 15 * tenure) / 26. The 'last drawn salary' includes both the basic salary and dearness allowance (DA). Tenure, crucial for the calculation, is measured in completed years of service. Setting Up the Excel Sheet Employee Details Section Create columns for essential employee details – name, joining...