WHAT WE DO
Insurance Services
Employee Benefits
Financial Advisory
Banking & Financial
ESG & Sustainability
Social Security
Investment & Asset Advisory
Capital, Solvency & Risk
Financial Reporting
Corporate Advisory
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Phone:
+971 4 876 8530Email:
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Actuarial valuations (including IAS 19), scheme design, and advisory for end-of-service benefits, pensions, post-employment medical, and alternative EOSB savings schemes.
Discuss your requirementsEmployee benefit obligations are among the most material liabilities on corporate balance sheets. Every employer in the GCC must provision for end-of-service gratuity under local labour law — and many across the Middle East and Africa sponsor pension schemes, post-employment medical benefits, or long-service awards that carry additional actuarial obligations.
Lux provides the actuarial expertise to measure these liabilities under IAS 19, design schemes that attract and retain talent, and advise on the new alternative EOSB savings frameworks (for example for UAE Cabinet Resolution No. 96 of 2023) that are transforming how employers in the region think about end-of-service benefits.
We serve social security schemes, corporates, government entities, and scheme trustees across the GCC, Africa, and Europe with audit-ready reports and transparent methodology.
IAS 19 requires organisations to recognise the cost of employee benefits in the period they are earned. We perform actuarial valuations using the Projected Unit Credit method to calculate the present value of defined benefit obligations for gratuity, pensions, and post-employment medical benefits.
Our reports are structured to mirror IFRS disclosure schedules, so your finance teams and external auditors can adopt them without friction, across Africa and the Middle East.
UAE Cabinet Resolution No. 96 of 2023 introduced Alternative EOSB Savings Schemes, allowing employers to invest end-of-service benefits in approved funds instead of holding unfunded liabilities on their balance sheet. This is the most significant change to UAE employment law in decades. Compulsion will follow.
The rest of the GCC is expected to implement similar schemes.
Lux is CMA-licensed (Category 5 Financial Consultations) to perform the financial consulting and advisory required under this framework. We help employers transition from unfunded gratuity to funded savings schemes, select and monitor approved investment vehicles, and manage the ongoing compliance requirements.
Our studies show that employers can save up to 3% of payroll, now that these schemes are available.
Benefit scheme design balances talent attraction with cost control. We design retirement, savings, and risk benefit schemes that meet employer objectives while remaining competitive with market practice.
Defined benefit pension schemes require regular actuarial valuations to assess funding adequacy and determine sponsor contribution levels. We value pension obligations for regulatory filings, corporate accounting, and trustee governance.
This is typical for the schemes we see in South Africa and Kenya and other countries where these defined benefit schemes are entrenched.
Post-employment medical benefits (often called OPEB or retiree medical) are a long-tail liability that can rival pension obligations in size. We value these obligations using demographic projections, healthcare cost trends, and medical inflation assumptions.
IAS 19 is the (IFRS) international accounting standard for post-employment employee benefits. An actuarial valuation under IAS 19 measures the present value of an employer's obligations for post-employment gratuity, pensions, and medical benefits using the Projected Unit Credit method. The results appear in the financial statements.
Cabinet Resolution No. 96 of 2023 introduced the Alternative EOSB Savings Scheme system in the UAE, allowing employers to invest end-of-service benefits in approved funds. It transforms gratuity from an unfunded balance-sheet liability to a funded, investment-linked savings scheme. It has many advantages for both employer and employee.
Annually for financial statement reporting. Interim roll-forward valuations may be needed if there are material changes to the workforce, benefit structures, or economic assumptions during the year. M&A or IPO projects should consider these costs and liabilities as part of due diligence.
The actuarial cost method required by IAS 19 for measuring defined benefit obligations. It projects each employee's benefit entitlement forward to each of the (potentially hundreds of) expected payment dates, then discounts back to present value on valuation date. Benefits are attributed to past service proportionally.
IFRS 17, IFRS 9, IFRS 2, and IAS 19 actuarial implementations, ongoing compliance, and managed reporting services.
CMA-licensed (Category 5) financial consulting, investment product analysis, suitability advisory, and corporate financial planning in the UAE.
Asset-liability management, strategic asset allocation, liability-driven investment, manager selection, and insurance investment strategy.
Talk to our actuaries about IAS 19 valuations, scheme design, or transitioning to the UAE alternative EOSB savings framework.
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