If you’re a business owner, finance manager, or HR leader in the UAE, there’s one financial liability that might be quietly growing in the background: End of Service Benefits (EOSB).
Although it is often treated as an HR or payroll task, EOSB is much more than that. In fact, it plays a crucial role in financial planning, regulatory compliance, and risk management. Therefore, it is essential for UAE businesses to approach it with strategic intent — not just operational necessity.
What Are End of Service Benefits (EOSB)?
Under UAE Labour Law, employers are required to provide a gratuity payout to eligible employees at the end of their service. This liability is calculated based on factors such as salary, length of service, and termination type.
Moreover, under IAS 19, this gratuity must be accurately represented in your company’s financial statements. Inaccurate or estimated reporting no longer meets the regulatory standard. As a result, businesses are expected to conduct actuarial valuations to determine their true EOSB liability.
Why IAS 19 Compliance Is More Important Than Ever
Since 2016, the UAE has increasingly enforced compliance with IAS 19, aligning local regulations with global accounting standards. Consequently, companies must now report EOSB liabilities based on actuarial assumptions rather than arbitrary estimates.
Failing to comply can result in:
- Delays during audits
- Discrepancies in financial statements
- A decline in investor or board confidence
In addition, companies with growing teams or multiple business units are more prone to underestimating these liabilities without expert support.
The Smarter Approach: Professional EOSB Valuation
Rather than relying on outdated templates or manual estimates, leading UAE businesses are now turning to actuarial valuation firms for professional EOSB assessments.
At RJAC Gulf Partners, we provide:
- Accurate EOSB calculations based on salary growth, attrition, and tenure
- IAS 19 compliant reports with P&L and OCI breakdowns
- Forecasts and projections for better financial planning
- Audit-ready documentation accepted by top-tier audit firms
In other words, we help you go beyond compliance — we bring clarity, insight, and strategic value.
Who Should Prioritize EOSB Valuation?
EOSB valuation is not limited to large enterprises. In fact, it is equally relevant for:
- Startups preparing for funding
- SMEs with long-serving employees
- Multinational firms managing multiple payrolls
- Any business aiming for audit accuracy and financial control
Whether you’re scaling or consolidating, having a clear picture of your gratuity liabilities is vital.
UAE Businesses Are Evolving — Your Strategy Should Too
The UAE is transforming into a globally competitive business hub. As governance and compliance standards rise, so do the expectations around financial reporting and internal control.
Therefore, companies that invest in professional EOSB valuation gain an edge — they reduce audit risks, improve stakeholder trust, and unlock better financial forecasting.
On the other hand, overlooking these obligations can lead to last-minute surprises, funding gaps, or compliance penalties.
Turn Compliance into Competitive Advantage
At RJAC Gulf Partners, we go beyond numbers. We help you understand what your EOSB liabilities truly mean for your business today — and how to manage them for the future.
With a presence in Dubai and Abu Dhabi, our actuarial team delivers reports that are compliant, strategic, and future-ready.