Understanding Actuarial Valuation and End of Service Benefits: A Comprehensive Guide

In today’s complex business environment, companies are expected to be transparent and accurate in their financial reporting. Among various financial obligations, End of Service Benefits (ESB) play a crucial role, particularly in regions like the Middle East, where they are mandated by labor laws. However, to ensure that these benefits are accurately accounted for in financial statements, Actuarial Valuation becomes essential. In this blog, we’ll explore what actuarial valuation is, why it is important for ESB, and how it ensures long-term financial sustainability for businesses. We’ll also explain how Mithras Consultants can help your business stay compliant and financially sound. What Is End of Service Benefit? End of Service Benefit (ESB), also known as gratuity, is a statutory payment made by an employer to an employee at the end of their service. This could be due to resignation, retirement, or termination. The benefit is calculated based on the employee’s s...