Importance of End of Service Benefits Valuation in KSA and UAE

In the Kingdom of Saudi Arabia (KSA) and the United Arab Emirates (UAE), end of service benefits (ESB) play a crucial role in the employment landscape. These benefits provide financial security to employees upon the end of their service, whether through retirement, resignation, or termination. Accurate valuation of these benefits is vital for both employers and employees. It ensures compliance with local labor laws, helps in financial planning, and aids in the reinsurance premium calculation . Understanding the significance of ESB valuation can help businesses in KSA and UAE manage their financial liabilities more effectively. Ensuring Compliance with Labor Laws Both KSA and UAE have specific labor laws mandating end of service benefits . These laws require employers to provide a certain amount of compensation to employees based on their length of service. Accurate valuation of ESB is essential for businesses to comply with these regulations. Failure to do so c...