Navigating actuarial valuations post–labour codes implementation

The implementation of the labour codes has had a significant impact on the cost of retirement and other long-term employee benefits in India—particularly gratuity and leave encashment schemes. Following guidance issued by the Institute of Chartered Accountants of India (ICAI), most listed companies have already recognised a past service cost in their Q3 FY25–26 financial statements. At the same time, organisations are closely monitoring potential further guidance from the Ministry of Labour and Employment, especially around the interpretation of “wages”, which could have important implications for retirement benefits obligations.

In this context, WTW India hosted an exclusive webinar on actuarial valuations to help organisations navigate these changes with confidence.

Key topics covered

• Recap of the implications of the labour codes on gratuity and leave encashment liabilities.
• Assessment of the past service cost reported by companies in Q3 FY25–26.
• Insights into scheme design changes being considered by companies for gratuity and leave encashment schemes to minimise financial impact.
• Key changes to the actuarial valuation process under the new labour code provisions.
• Importance of setting appropriate assumptions and revisiting Ind AS 19 disclosure requirements.

The webinar was led by Ritobrata Sarkar and Divya Dadlani, both senior actuaries at WTW.

Please fill the form on the webpage to view the on-demand webinar.